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 43 of 48
- A. 0.6
- B. 0.5
- C. 0.2
- D. 0.7
Explanation: The ratio is calculated as 40 divided by 200, giving 0.20, or 20%. This measures the proportion of the workforce that left during the…
Correct answer: 0.2- A. throughput costs
- B. investments
- C. operating costs
- D. marginal costs
Explanation: Operating costs are the ongoing costs of running production and business operations, including wages, depreciation, utilities and rent.
Correct answer: operating costs- A. statistical process control
- B. statistical failure control
- C. statistical control of prevention cost
- D. statistical control of sunk costGet Quality Software
Explanation: Statistical process control uses statistical techniques to distinguish natural random variation from unusual, assignable variation in a…
Correct answer: statistical process control- A. 42.625
- B. 36.724
- C. 32.625
- D. 41.625
Explanation: Manufacturing cycle efficiency equals value-added manufacturing time divided by total manufacturing time.
Correct answer: 32.625- A. relevant costing diagram
- B. cause and effect diagram
- C. control chart
- D. Pareto chart
Explanation: A Pareto chart displays the frequency or relative importance of defects, helping identify which defects occur most often.
Correct answer: Pareto chart- A. effective performance
- B. efficient performance
- C. in-time performance
- D. on-time performance
Explanation: On-time performance measures whether goods or services are delivered by the date promised in the contract or order.
Correct answer: on-time performance847. The time a company takes until a good is produced after order placement is known as ___________?
- A. manufacturing lead time
- B. manufacturing cycle efficiency
- C. customer response time
- D. system process time
Explanation: Manufacturing lead time is the elapsed time from placing an order until the product is completed.
Correct answer: manufacturing lead time- A. appraisal costs
- B. internal and external failure costs
- C. prevention costs
- D. all of above
Explanation: Quality costs comprise prevention costs, appraisal costs, internal failure costs and external failure costs.
Correct answer: all of above- A. 94%
- B. 93%
- C. 95%
- D. 97.50%
Explanation: Employee satisfaction is calculated as satisfied employees divided by total employees: 195 ÷ 200 × 100 = 97.5%.
Correct answer: 97.50%- A. prevention costs
- B. external failure costs
- C. appraisal costs
- D. internal failure costs
Explanation: Internal failure costs arise when defective products are identified and corrected before shipment to customers.
Correct answer: internal failure costs- A. measures of growth and learning
- B. measures of internal business processes
- C. customer measures
- D. financial measures
Explanation: Training employees to identify and manage bottlenecks builds employee capability and improves organizational processes, so it belongs to…
Correct answer: measures of growth and learning- A. prevention costs
- B. external failure costs
- C. appraisal costs
- D. internal failure costs
Explanation: Appraisal costs are incurred to inspect, test, and identify products that fail to meet specifications.
Correct answer: appraisal costs- A. responding time
- B. value chain time
- C. delivery time
- D. manufacturing cycle efficiency
Explanation: Delivery time is the elapsed time required to complete and deliver an order to the customer.
Correct answer: delivery time- A. learning quality
- B. design quality
- C. conformance quality
- D. business process quality
Explanation: Conformance quality measures how closely actual product performance matches its specified features and design.
Correct answer: conformance quality- A. employee turnover ratio
- B. employee empowerment ratio
- C. employee satisfaction ratio
- D. employee training percentage
Explanation: The employee empowerment ratio measures the share of processes in which employees are authorized to make decisions.
Correct answer: employee empowerment ratio- A. throughput contribution
- B. operating cost contribution
- C. operating contribution
- D. marginal contribution
Explanation: Throughput contribution equals sales revenue minus the direct material cost of goods sold, because direct materials are treated as the…
Correct answer: throughput contribution- A. relevant costing diagram
- B. cause and effect diagram
- C. control chart
- D. Pareto diagram
Explanation: A fishbone diagram, also called an Ishikawa diagram, organizes possible causes of a particular problem or effect.
Correct answer: cause and effect diagram- A. learning quality
- B. design quality
- C. conformance quality
- D. business process quality
Explanation: Design quality refers to how well a product’s planned features satisfy customer requirements.
Correct answer: design quality- A. $14,500
- B. $135,000
- C. $125,000
- D. $12,500
Explanation: The price recovery effect is the change in selling price multiplied by the base-year units sold: ($60 − $55) × 25,000 = $125,000.
Correct answer: $125,000860. In strategy formulation, the forces that must be focused for industry analysis include ________?
- A. potential entrants in market
- B. customer's bargaining power
- C. supplier's bargaining power
- D. all of above
Explanation: Porter’s industry analysis considers competitive forces including potential entrants, customers’ bargaining power, and suppliers’…
Correct answer: all of above