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 8 of 48
- A. annual profit plan
- B. budgeting
- C. coordination
- D. complex plan
Explanation: Coordination means balancing and integrating the activities of different departments and the various aspects of products or services.
Correct answer: coordination- A. plan coordination
- B. plan accounts
- C. obtain information
- D. coverage information
Explanation: After the initial planning stage, management must obtain the sales, production, cost and other information needed to prepare the operating…
Correct answer: obtain information- A. annual budget
- B. operating budget
- C. specific budget
- D. master budget
Explanation: A master budget combines the operating budgets with the financial budget and presents the organisation’s overall plan for a period…
Correct answer: master budget- A. change analysis
- B. original analysis
- C. sensitivity analysis
- D. predicted analysis
Explanation: Sensitivity analysis uses a what-if approach to measure how changes in assumptions, such as sales volume or costs, affect the projected…
Correct answer: sensitivity analysis- A. serial correlation
- B. marketing plan
- C. financial plan
- D. both B and C
Explanation: The master budget consolidates all departmental projections, including operating plans such as marketing and the financial plan.
Correct answer: both B and C- A. 6000 units
- B. 4000 units
- C. no units
- D. 8000 unitsUrban & Regional Planning
Explanation: Required production equals budgeted sales plus desired ending inventory minus beginning inventory: 2,000 + 3,000 − 1,000 = 4,000 units.
Correct answer: 4000 units- A. focused accounting
- B. responsibility accounting
- C. information accounting
- D. blame accounting
Explanation: Responsibility accounting assigns information and accountability to the managers responsible for particular activities or cost centres.
Correct answer: responsibility accounting- A. math plan model
- B. financial planning models
- C. operating plan models
- D. master plan modelsFinance
Explanation: Financial planning models express the mathematical relationships among operating activities, financing activities and their effect on the…
Correct answer: financial planning models- A. complexity
- B. process
- C. budget
- D. batching
Explanation: A budget is a formal plan expressed in financial and, where relevant, non-financial terms, such as units of production or labour hours.
Correct answer: budget- A. coordination
- B. communication
- C. annual profit plan
- D. budgetingAccounting & Auditing
Explanation: Communication ensures that employees understand organisational goals and their own responsibilities in achieving them.
Correct answer: communication- A. budget
- B. batching
- C. complexity
- D. process
Explanation: A budget quantifies expected cash flows, income and financial position for a future period.
Correct answer: budget- A. market budget
- B. price schedule
- C. planned schedule
- D. cash budgetCompare Credit Cards
Explanation: A cash budget forecasts expected cash receipts, cash payments, and the resulting cash position for a planned operating level.
Correct answer: cash budgetCompare Credit Cards- A. 4000 units
- B. 5000 units
- C. 8000 units
- D. 10000 unitsHire An Accountant
Explanation: Budgeted production equals budgeted sales plus desired ending inventory minus beginning inventory: 5,000 + 4,000 − 1,000 = 8,000 units.
Correct answer: 8000 units- A. cost based budgeting
- B. activity based budgeting
- C. production based budgeting
- D. raw material budgeting
Explanation: Activity-based budgeting estimates the costs of activities required to produce and sell offerings, using activities and their cost drivers…
Correct answer: activity based budgeting- A. period budget
- B. batch budget
- C. discontinued budget
- D. continuous budget
Explanation: A continuous, or rolling, budget is continuously updated so that a specified future period remains covered as each period ends.
Correct answer: continuous budget- A. direct manufacturing labor-hours
- B. setup labor-hours
- C. budgeted labor-hours
- D. both a and b
Explanation: Manufacturing overhead may be driven by direct labour-hours and by setup labour-hours, depending on the activities causing the overhead.
Correct answer: both a and b- A. manager cost
- B. influential cost
- C. center cost
- D. controllable costCompare Credit Cards
Explanation: A controllable cost is one that a responsibility-centre manager can significantly influence within the relevant period.
Correct answer: controllable costCompare Credit Cards- A. decentralization
- B. centralization
- C. autonomy of effort
- D. congruency
Explanation: Decentralization gives lower-level managers authority to make decisions within their areas.
Correct answer: decentralization- A. mobile products
- B. dysfunctional products
- C. intermediate product
- D. territorial product
Explanation: An intermediate product is transferred from one subunit to another for further processing or use.
Correct answer: intermediate product- A. motivation
- B. goal congruence
- C. effort
- D. autonomy
Explanation: Effort is the exertion or energy applied to achieve a goal. Motivation is the force that stimulates effort, while autonomy means…
Correct answer: effort