Free Accounting MCQs Mock Test Online with Answers

Q1 : If the economic order quantity for one year is 15000 packages and demand in units for one year are 1500 units, then number of deliveries in a year will be ____________?

A: 16 B: 12 C: 10 D: 14

Q2 : An exertion for achieving a set goal is known as ____________?

A: motivation B: goal congruence C: effort D: autonomy

Q3 : The function of plant manager, in which he is responsible for new assets investment is termed as _____________?

A: line function B: staff function C: asset function D: investment function

Q4 : The variable overhead flexible budget variance is added to flexible budget amount to calculate _____________?

A: actual cost incurred B: fixed cost incurred C: variable cost incurred D: manufacturing cost incurred

Q5 : Total cost related to work in process inventory is divided by total units of work done is used to calculate _____________?

A: Gross weighted margin B: weighted average revenue C: weighted average cost D: weighted average conversion cost

Q6 : The time that a company takes to create and produce a new product is classified as _________?

A: management factor B: time factor C: customer factor D: chain factor

Q7 : The fifth step in process costing system is to ___________?

A: allocate separable costs B: allocate joint costs C: compute gross margin D: assign total cost to completed units

Q8 : If the relevant opportunity cost of capital is $2950 and the relevant carrying cost of inventory is $6700, then the relevant incremental cost will be _____________?

A: $9,650 B: $2,350 C: $3,750 D: $2,750

Q9 : The starting point in the operating budget is __________?

A: cost budget B: material list C: revenue budget D: list of investors

Q10 : In a normal accounting period, an allocated amount of indirect cost is $700 and an actual amount is $800, then this can be classified as ____________?

A: under allocated indirect cost B: over allocated direct cost C: over allocated budget D: under allocated budget

Q11 : The dysfunctional decision making is also known as ___________?

A: dysfunctional decision making B: congruent decision making C: incongruent decision making D: both a and c

Q12 : In normal costing, the budgeted rate is multiplied to an actual quantity, which have been used as the allocation base to calculate ___________?

A: budget overhead applied B: manufacturing overhead applied C: labor overhead applied D: none of above

Q13 : If the opportunity cost per barrel is $45 per unit, incremental cost per barrel is $65, then minimum transfer price will be __________?

A: $45 B: $110 C: $20 D: $65

Q14 : The cost of product failure, error prevention and appraisals can be classified under ___________?

A: stocking costs B: stock-out costs C: costs of quality D: shrinkage costs

Q15 : The costing system, which is a combination of process costing and job costing system, is classified as __________?

A: weighted costing system B: average costing system C: hybrid costing system D: double costing system

Q16 : If the budgeted indirect cost arte is $115 and the budgeted cost allocation base is $830 per hour, then the annual indirect cost (budgeted) will be ___________?

A: $93,450 B: $94,560 C: $96,450 D: $95,450

Q17 : The revenues and expenses of a company are displayed in which statement?

A: Balance Sheet B: Cash Flow Statement C: Income Statement D: None of the above

Q18 : An under allocated indirect cost is also called ____________?

A: under applied indirect cost B: under absorbed indirect cost C: absorbed indirect cost D: both a and b

Q19 : The cash management, investments, long and short term financing are included in ___________?

A: proprietorship B: functional line C: treasury D: controllership

Q20 : Sales return is also known as____________?

A: Return received B: Return Payed C: Return inward D: Return outward

Q21 : An engineering of products or detailed planning of products or services is called ___________?

A: product design B: research steps C: useful chain D: value added

Q22 : An average inventory in units is multiplied with annual relevant carrying cost of each unit to calculate ____________?

A: annual irrelevant ordering costs B: annual relevant carrying costs C: annual relevant ordering costs D: annual irrelevant carrying costs

Q23 : The plan of action; how an organization meets its opportunities and capabilities is classified as ___________?

A: action plan B: strategy C: step wise plan D: complex plan

Q24 : The costing technique, in which the actual direct rates are multiplied to quantity of direct cost inputs is classified as __________?

A: priced costing B: actual costing C: direct costing D: indirect costing

Q25 : The relevant ordering costs are added into relevant carrying costs to calculate __________?

A: relevant total costs B: contribution costs C: throughput costs D: optimized costs

Q26 : The purpose of management accounting is to ___________?

A: past orientation B: help banks make decisions C: help managers make decisions D: help investors make decision

Q27 : The budget, which highlights the difference between actual quantity and budgeted quantity is termed as _____________?

A: actual cost budget B: flexible budget variance C: inflexible budget D: hourly budget

Q28 : The normal spoilage is subtracted from total spoilage to calculate _____________?

A: abnormal spoilage B: Gross weighted spoilage C: inventoriable spoilage D: partial spoilage

Q29 : The stage in production process, where the manufactured goods are checked; whether the units are acceptable or not is classified as __________?

A: rework point B: inspection point C: spoilage point D: scrap point

Q30 : If the cost per unit is $70 and the total number of units manufactured in company are 6000, then the total manufacturing cost would be _____________?

A: $240,000.00 B: $320,000 C: $210,000 D: $420,000

Q31 : The costs that are incurred in last department, where the product has been processed and will be carried to next department for further processing are called __________?

A: partial work costs B: transferred-in costs C: transferred-out costs D: weighted average costs

Q32 : A company must eliminate all those activities that do not add value to all the products or services in planning of ___________?

A: variable overhead cost B: fixed overhead cost C: fixed batch cost D: variable batch cost

Q33 : The cost of abnormal spoilage is not treated as _____________?

A: conversion costs B: sunk costs C: inventoriable costs D: non inventoriable costs

Q34 : If the flexible budget amount is $26000 and fixed overhead flexible budget variance is $12500, then actual incurred cost would be ____________?

A: $38,500 B: $48,500 C: $58,500 D: $13,500

Q35 : The budget, which predicts the effect of given level of operations on a cash position is classified as __________?

A: market budget B: price schedule C: planned schedule D: cash budget

Q36 : The single or multiple units of distinct services or products are classified as _________?

A: cost B: job C: post D: price

Q37 : The depreciation on plant equipment, salaries of plant managers and plant leasing costs are considered a _____________?

A: fixed batch cost B: variable batch cost C: variable overhead cost D: fixed overhead cost

Q38 : The total available assets are subtracted from idle assets to calculate

A: market equity B: total assets employed C: total assets available D: stockholders’ equity

Q39 : In process costing method, when the work done in current accounting period, and beginning inventory before current accounting period, is classified as _________?

A: partial inventory costing method B: current period inventory method C: Last-in, first-out method D: First-in, first-out method

Q40 : The model which refers possibility for management to conduct sensitivity analysis can be categorized under __________?

A: investment planning models B: financial planning models C: cost planning models D: revenues forecast models

Q41 : If the purchase order lead time is 35 minutes and number of units sold per time is 400 units, then reorder point will be ____________?

A: 14000 units B: 14500 units C: 15000 units D: 15500 units

Q42 : The second step in processing costing system is to ___________?

A: summarize total costs B: compute cost for each equivalent unit C: summarize flow of output D: compute output in units

Q43 : An approach in which the managers use the resources to increase customer value is classified as __________?

A: help management B: cost management C: past management D: future management

Q44 : The normal activity range in which there is relationship between activity and costs is classified as _____________?

A: relevant range B: irrelevant range C: cause range D: effective range

Q45 : The human resource management, IT management and management accountants are categorized under ______________?

A: marketing management B: production management C: staff management D: line management

Q46 : The companies that buy the raw materials and convert them into the finished goods for customers are a part of ____________?

A: manufacturing sector companies B: merchandising sector companies C: service sector companies D: raw material companies

Q47 : In value chain analysis, the delivery of services or products to end customers is classified as _____________?

A: resource research B: market research C: utilization D: distribution

Q48 : If an actual indirect cost incurred is $25000 and the indirect cost allocated is $23000, then the over allocated indirect cost would be ________?

A: $48,000 B: −$2000 C: $2,000 D: −$48000

Q49 : An economic value added method is specific type of method to calculate _____________?

A: net income B: nominal income C: residual income D: residual investment

Q50 : The products or services that are transferred between different subunits of a company are classified as _____________?

A: mobile products B: dysfunctional products C: intermediate product D: territorial product

Q51 : The amount invested by the proprietor to start the business is called:

A: Capital B: Business C: Drawings D: All of them

Q52 : The procedure of assigning the direct cost to any cost abject is classified as ____________? 0

A: sales allocation B: cost tracing C: cost allocation D: sales tracing

Q53 : If the flexible budget amount is $40000 and variable overhead flexible budget variance is $25000, then actual costs incur will be ____________?

A: $15,000 B: $35,000 C: $65,000 D: $75,000

Q54 : The costs of issuing purchase orders, making of delivery records for tracking payments and costs of inspection of items are classified as _____________?

A: stock-out costs B: ordering costs C: carrying costs D: purchasing costs

Q55 : The companies in the industry that purchase the finished goods, and further sell the products into the market are classified as ______________?

A: service sector companies B: raw material companies C: manufacturing sector companies D: merchandising sector companies

Q56 : The number of purchase orders for each year is multiplied to relevant ordering cost for each purchase order to calculate _____________?

A: annual irrelevant ordering costs B: annual relevant carrying costs C: annual relevant ordering costs D: annual irrelevant carrying costs

Q57 : The master budget includes all the projections of company’s budget and focuses on __________?

A: serial correlation B: marketing plan C: financial plan D: both B and C

Q58 : If the required rate of return is 12% and the per unit cost of units purchased is $35, then the relevant opportunity cost of capital will be ____________?

A: $6.20 B: $7.20 C: $4.20 D: $5.20

Q59 : In management accounting, an emphasis and focus must be __________?

A: future oriented B: past oriented C: past oriented D: communication oriented

Q60 : The price charged by one subunit to supply products or services to another unit is called _____________?

A: subunit autonomy cost B: transfer price C: performance prices D: effort cost

Q61 : An operating income is divided by the revenues to calculate ______________?

A: residual income B: return on after-tax operating income C: return on sales D: return on investment

Q62 : The mathematical relationships exist between operating and financing activities that affect master budget are called _____________?

A: math plan model B: financial planning models C: operating plan models D: master plan models

Q63 : The units of normal spoilage are divided to total completed units, rather than total actual produced units to calculate ____________?

A: normal spoilage rates B: abnormal spoilage rates C: normal scrap rates D: abnormal scrap rates

Q64 : The budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to ___________?

A: budget production B: planned production C: setup production D: stand by production

Q65 : If an actual manufacturing overhead costs is $225000 and actual total quantity of cost allocation base is 2500 labor hours, then the overhead rate will be __________?

A: $60 B: $90 C: $80 D: $70

Q66 : The decisions regarding usage of material, kind and changes in plant processing are a part of ____________?

A: past management B: future management C: help management D: cost management

Q67 : The return on investment is also known as _____________?

A: accrual accounting rate of return B: accounting rate of return C: nominal rate of return D: both a and b

Q68 : The rupee amount for required return of investment is subtracted from income to calculate _____________?

A: net income B: after tax income C: residual income D: operating income

Q69 : The cash sales, accounts receivables and rental receipts all are known as ___________?

A: cash receipts B: budget receipts C: goods manufactured D: total goods sold

Q70 : If the transferred out total cost is $1850000 and the number of good units (produced), then the cost per good unit transferred out and completed can be __________?

A: 245.1724 B: 255.1724 C: 278.1724 D: 268.1724

Q71 : LIFO stands for__________?

A: Lots in , Few out B: Link input, Format Output C: Last input, First Output D: Last in, First Out

Q72 : The centers such as revenue, cost, investment and profit all are known as ___________? 0

A: marketing center B: financial center C: responsibility center D: planning center

Q73 : The maximum freedom for managers and minimum constraints are the main features of ___________?

A: total autonomy B: total centralization C: total decentralization D: total congruency

Q74 : The aspects of accounting for scrap includes __________?

A: physical tracking B: non-inventoriable costing C: inventory costing D: both a and c

Q75 : The first step in developing an operating budget is to ___________?

A: identify the product B: identify the problem C: identify the quartiles D: identify the percentiles

Q76 : An allocation approach, in which all the overhead entries are restated using actual cost rates in place of budgeted rates is called ___________?

A: unadjusted budget rate approach B: adjusted allocation rate approach C: unadjusted allocation rate approach D: adjusted budget rate approach

Q77 : The part of the master budget, which covers the capital expenditures, budgeted statement of cash flows and balance sheets are classified as ___________?

A: financial budget B: capital budget C: cash flows budget D: balanced budget

Q78 : The systematic flow of services, goods or information from the buying material for product delivery to the customers is known as __________?

A: supply chain B: value chain C: material flow chain D: manufacturing flow chain

Q79 : Cash discount is provided on _______________?

A: Purchases B: Prompt payment C: Sales D: Sales return

Q80 : The practice, which makes target more achievable by underestimating revenues or overestimating cost is called _____________?

A: cost slack B: target slack C: budgetary slack D: revenue slack

Q81 : The formula to calculate return on investment, according to profitability analysis in DuPont method is ____________?

A: return on sales * investment turnover B: return on sales + investment turnover C: return on sales – investment turnover D: investment turnover + residual income

Q82 : In value chain analysis, the coordination, acquiring and assembling of resources to produce a product is classified as _____________?

A: resourcing B: value acquiring C: production D: value acquaintance

Q83 : If the demand of one year is 25000 units, relevant ordering cost for each purchase order is $210, carrying cost of one unit of stock is $25 then the economic order quantity will be ___________?

A: 678 packages B: 648 packages C: 658 packages D: 668 packages

Q84 : The what-if technique, which examines changes in results, if original prediction would not be achieved is called _____________?

A: change analysis B: original analysis C: sensitivity analysis D: predicted analysis

Q85 : If the current assets are $856000 and the working capital is $654500, then the current liabilities will be ___________?

A: $501,500 B: $401,500 C: $201,500 D: $301,500

Q86 : Goods Return by the customer are termed as :

A: Purchase return B: Customer return C: Sales return D: Inventory return

Q87 : The first step in developing cost rate for budgeted variable overhead is to __________?

A: choose the budgeting period B: select allocation bases C: identify variable overhead cost D: compute the per unit rate

Q88 : The process of assigning the direct or indirect cost to any cost object is known as ____________?

A: cost assignment B: cost expectation C: event assignment D: probability assignment

Q89 : The quantitative expression of decided plan and coordination, for plan implementation is known as __________?

A: cost format B: decided plan C: coordination plan D: budget

Q90 : If the budgeted annual manufacturing indirect cost is $2250000 and the cost allocation base is 2800 labor hour, then budgeted manufacturing overhead rate will be ___________?

A: $803.571 per labor hour B: $805 per labor hour C: $905 per labor hour D: $802 per labor hour

Q91 : The decision model to calculate optimal quantity of inventory to be ordered is called ____________?

A: efficient order quantity B: economic order quantity C: rational order quantity D: ptimized order quantity

Q92 : The term which describes the assigning of indirect cost, to any cost object is classified as ___________?

A: cost allocation B: sales tracing C: sales allocation D: sales allocation

Q93 : The first step in process costing system is to ___________?

A: summarize flow of output B: compute output in units C: summarize total costs D: compute cost for each equivalent unit

Q94 : The strategy that interlinks technology and people, to enhance relationships in all the business functions is classified as ____________?

A: technology management B: people management C: customer relationship management D: resource management

Q95 : The costing and allocating situation, in which the indirect cost allocated amount is less than actually incurred amount is known as ___________?

A: over allocated budget B: under allocated budget C: under allocated indirect cost D: over allocated direct cost

Q96 : In management accounting, an emphasis and focus must be __________?

A: future oriented B: past oriented C: past oriented D: communication oriented

Q97 : In support of business transaction, any written evidence is called ___________?

A: Discount B: Voucher C: Allowance D: Price

Q98 : The quantitative expression, of action plan by the management of the firm for a specified period of time is classified as ___________?

A: complexity B: process C: budget D: batching

Q99 : The process of analyzing and reviewing financial records to check the integrity of company financial reports is called __________?

A: internal audit B: external audit C: functional audit D: treasury audit

Q100 : The type of plan of a company, which quantities the expectations of cash flows, income and financial position is known as ___________?

A: budget B: batching C: complexity D: process

Free Accounting MCQs Mock Test Online with Answers

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