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 9 of 48
- A. $45
- B. $110
- C. $20
- D. $65
Explanation: The minimum transfer price equals incremental cost plus opportunity cost: $65 + $45 = $110 per barrel.
Correct answer: $110- A. motivation
- B. goal congruence
- C. effort
- D. autonomy
Explanation: Goal congruence exists when individuals or subunits coordinate their actions toward the organization’s overall goal.
Correct answer: goal congruence- A. market-based transfer prices
- B. cost-based transfer prices
- C. negotiated transfer prices
- D. all of above
Explanation: Transfer prices may be based on external market prices, cost information, or negotiations between subunits.
Correct answer: all of above- A. minimum operating cost
- B. maximum operating costs
- C. maximum transfer price
- D. minimum transfer price
Explanation: The selling subunit’s minimum transfer price is its incremental cost plus the opportunity cost of the resources used.
Correct answer: minimum transfer price- A. total autonomy
- B. total centralization
- C. total decentralization
- D. total congruency
Explanation: Total decentralization places decision-making authority with lower-level managers and imposes relatively few constraints.
Correct answer: total decentralization- A. subunit autonomy cost
- B. transfer price
- C. performance prices
- D. effort cost
Explanation: A transfer price is the amount charged when one subunit supplies goods or services to another subunit of the same company.
Correct answer: transfer price- A. dual pricing
- B. functional pricing
- C. congruent pricing
- D. optimal pricing
Explanation: Dual pricing is used when the same transfer of goods or services is recorded using two different prices, usually one for each of the…
Correct answer: dual pricing168. The continuous pressure of reducing the cost of products to be sold, is classified as ____________?
- A. supply efficiency
- B. material affectivity
- C. processing effective
- D. cost and efficiency
Explanation: Continuous pressure to reduce the cost of products while maintaining output reflects the cost-and-efficiency objective.
Correct answer: cost and efficiency- A. researching
- B. marketing
- C. acquaintance
- D. usefulness
Explanation: Marketing in the value chain includes selling and promoting products or services to prospective customers.
Correct answer: marketing- A. product design
- B. research steps
- C. useful chain
- D. value added
Explanation: Product design is the engineering and detailed planning stage in which the features, specifications, and production requirements of a…
Correct answer: product design- A. material accounting
- B. cost accounting
- C. supplies accounting
- D. business accounting
Explanation: Cost accounting collects and reports both monetary and operational information about materials, resources, and their acquisition or use.
Correct answer: cost accounting- A. line function
- B. staff function
- C. asset function
- D. investment function
Explanation: A plant manager performs a line function because the role has direct operational responsibility and authority over plant resources…
Correct answer: line function- A. staff management
- B. line management
- C. marketing management
- D. production managementGet Executive Coaching
Explanation: Line management covers the activities directly involved in producing and delivering goods or services, including marketing, production…
Correct answer: line management- A. addressing management
- B. research and development
- C. value development
- D. service provider
Explanation: Research and development involves experimenting and generating ideas to create or improve products and services.
Correct answer: research and development- A. future oriented
- B. past oriented
- C. communication oriented
- D. bank oriented
Explanation: Management accounting is future-oriented because managers use forecasts, budgets, and relevant cost information to plan and make…
Correct answer: future oriented- A. customer services
- B. utility services
- C. resource services
- D. acquiring services
Explanation: Customer services in the value chain include after-sales support provided to current or potential customers.
Correct answer: customer services- A. past management
- B. future management
- C. help management
- D. cost management
Explanation: Cost management covers decisions that control and improve the use of materials, processing methods, and plant operations.
Correct answer: cost management- A. flow chart analysis
- B. supply chain analysis
- C. resource chain analysis
- D. acquiring analysis
Explanation: Supply chain analysis examines the movement of materials, goods and services from procurement through production to final delivery.
Correct answer: supply chain analysis- A. learning
- B. alternating
- C. examining
- D. decidingGet Executive Coaching
Explanation: Learning in management accounting involves reviewing past performance, considering alternatives and using that knowledge to plan future…
Correct answer: learning- A. management factor
- B. time factor
- C. customer factor
- D. chain factorHire An Accountant
Explanation: The time required to develop and manufacture a new product is a time factor because it measures the duration of the product-creation…
Correct answer: time factor