Free Cost Accounting MCQs with Answers
941 Cost Accounting MCQs from Accounting, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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941 questions · page 42 of 48
- A. 0.9
- B. 0.4
- C. 0.3
- D. 0.8
Explanation: The empowerment ratio is calculated as empowered employees divided by total processes: 20 ÷ 50 = 0.4.
Correct answer: 0.4- A. theory of contribution
- B. theory of constraints
- C. theory of conflicts
- D. theory of maximization
Explanation: The Theory of Constraints focuses on maximizing operating income by identifying and managing bottlenecks while coordinating non-bottleneck…
Correct answer: theory of constraints- A. rework costs
- B. prevention costs
- C. incremental costs
- D. reengineering costs
Explanation: Prevention costs are incurred to stop non-conforming goods from being produced in the first place.
Correct answer: prevention costs- A. prevention costs
- B. external failure costs
- C. appraisal costs
- D. internal failure costs
Explanation: A defect discovered after shipment has reached the customer, so its cost is an external failure cost.
Correct answer: external failure costs- A. 0.8125
- B. 0.6125
- C. 0.9125
- D. 1.725
Explanation: Manufacturing cycle efficiency is value-added manufacturing time divided by total manufacturing time: 65 ÷ 80 = 0.8125.
Correct answer: 0.8125- A. value chain efficiency
- B. value chain effectivity
- C. manufacturing cycle effectivity
- D. manufacturing cycle efficiency
Explanation: Dividing value-added manufacturing time by total manufacturing time measures manufacturing cycle efficiency.
Correct answer: manufacturing cycle efficiency- A. component and material factors
- B. machine-related factors
- C. human factors
- D. all of above
Explanation: A cause-and-effect, or fishbone, diagram investigates multiple possible causes, including materials, machines and human factors.
Correct answer: all of above- A. $5,000
- B. $14,000
- C. $4,000
- D. $9,000
Explanation: Under throughput accounting, throughput contribution equals total revenue minus direct material cost, because direct materials are treated…
Correct answer: $4,000- A. customer measures
- B. financial measures
- C. measures of growth and learning
- D. measures of internal business processes
Explanation: On-time performance and customer-response time show how well the organisation serves its customers, so they are customer measures.
Correct answer: customer measures830. The costs that are incurred to prevent low quality goods production are classified as ___________?
- A. costs of quality
- B. costs of learning
- C. costs of reengineering
- D. costs of spoilage inventory
Explanation: Costs incurred to prevent defective or low-quality output belong to the quality-cost category, specifically prevention costs within that…
Correct answer: costs of quality- A. manufacturing cycle efficiency
- B. value added manufacturing time
- C. responding time
- D. delivery time
Explanation: Manufacturing cycle efficiency equals value-added manufacturing time divided by total manufacturing time, so multiplying total…
Correct answer: value added manufacturing time- A. relevant costing diagram
- B. cause and effect diagram
- C. control chart
- D. pareto diagram
Explanation: A control chart plots successive observations of a process at regular intervals and compares them with control limits to detect unusual…
Correct answer: control chart- A. measures of growth and learning
- B. measures of internal business processes
- C. customer measures
- D. financial measures
Explanation: Setup time, manufacturing cycle efficiency, and manufacturing time measure how effectively the organisation converts inputs into products…
Correct answer: measures of internal business processes- A. manufacturing lead time
- B. manufacturing cycle time
- C. customer response time
- D. system process time
Explanation: Customer response time covers the complete period from placing an order to receiving delivery.
Correct answer: customer response time- A. employee satisfaction
- B. employee turnover
- C. employee training
- D. employee failures
Explanation: Employee satisfaction is measured by dividing employees reporting high satisfaction by the total number surveyed.
Correct answer: employee satisfaction- A. throughput costs
- B. investments
- C. operating costs
- D. marginal costsSearch Public Records
Explanation: These costs are classified as investments because they represent resources committed to production capability and future benefits…
Correct answer: investments- A. statistical process control
- B. statistical failure control
- C. statistical control of prevention cost
- D. statistical control of sunk cost
Explanation: Statistical quality control uses statistical techniques to monitor and control a production process, so it is also called statistical…
Correct answer: statistical process control- A. manufacturing efficiency time
- B. manufacturing cycle time
- C. responding time
- D. value chain time
Explanation: Manufacturing cycle time includes the time spent manufacturing plus the time an order waits within the production process.
Correct answer: manufacturing cycle time- A. measures of growth and learning
- B. measures of internal business processes
- C. customer measures
- D. financial measuresGet Quality Software
Explanation: Inventory carrying costs and discounts granted because of delayed deliveries affect revenue, costs, and profitability, making them…
Correct answer: financial measuresGet Quality Software- A. employee turnover ratio
- B. employee empowerment ratio
- C. employee satisfaction ratio
- D. employee training percentage
Explanation: Employee turnover ratio measures the rate at which employees leave and is calculated as employees who left divided by average employees.
Correct answer: employee turnover ratio