Free Accounting MCQs Mock Test Online with Answers

Q1 : If the total incurred cost in a production process are $30000 and the number of output units are 5000 units, then the units cost will be __________?

A: $16 B: $60 C: $6 D: $26

Q2 : A group of individual indirect cost item is defined as ___________?

A: direct pool B: cost pool C: indirect pool D: item pool

Q3 : 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

Q4 : An example of rework is ____________?

A: short lengths from wood work B: defective aluminum cans recycled by manufacturer C: detection of defective pieces before shipment D: none of above

Q5 : 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

Q6 : The budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers, can be classified as ___________? 0

A: anticipated budgeting B: number budgeting C: predict budgeting D: kaizen budgeting

Q7 : 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

Q8 : If the working capital is $265000 and the current liabilities are $378000, then the current assets can be ______________?

A: $113,000 B: $643,000 C: $743,000 D: $543,000

Q9 : The third step in developing operating budget is ____________?

A: analysis of batches B: analysis of batches C: analysis of products D: making predictions about future

Q10 : The machine budgeted time standards are set too tight, is the possible cause for ____________?

A: priced budget B: exceeding budget C: fixed budget D: variable budget

Q11 : The continuous budget is also known as ________?

A: rolling budget B: pin budget C: specific budget D: past budget

Q12 : 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

Q13 : The direct labor, salary outlays and direct material purchases are classified as ___________?

A: price disbursements B: cash disbursements C: budget disbursements D: goods disbursements

Q14 : The compelling strategic plan, promoting coordination and providing framework of performance are ___________?

A: advantages of budget B: disadvantages of budget C: advantages of costing method D: disadvantages of costing method

Q15 : Goods return to supplier are known as:__________?

A: Merchandise return B: Purchase return C: Return inwards D: Sales return

Q16 : For the business, capital is ____________?

A: Expense B: Liability C: financial assets D: All of them

Q17 : 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

Q18 : 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

Q19 : The normal spoilage is subtracted from total spoilage to calculate _____________?

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

Q20 : A push through system, according to which goods are manufactured for finished inventory solely, on the basis of forecasted demand can be classified as ___________?

A: in-time production B: materials requirement planning C: on-time production D: pull strategy of production

Q21 : If the demand in units are 18000, relevant ordering cost for each year is $150 and an order quantity is 1500, then annual relevant ordering cost would be __________?

A: $200 B: $190 C: $160 D: $180

Q22 : The aspects of accounting for scrap includes __________?

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

Q23 : 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

Q24 : In support of business transaction, any written evidence is called ___________?

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

Q25 : 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

Q26 : 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

Q27 : The spread of over allocated overhead and under allocated overhead among work in process, finished goods and goods sold cost is classified as __________?

A: proration approach B: appreciation approach C: depreciation approach D: adjusted approach

Q28 : When goods, in which business deals are sold, it is called___________?

A: Purchases B: Return inward C: Sales D: Return outwards

Q29 : 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

Q30 : The fourth step in development of operating budget is to __________?

A: choose alternatives B: evaluate alternatives C: efficiency improvements D: predicted improvements

Q31 : An availability of financial information, to oversee operations and system of accounting is known as ____________?

A: manager ship B: controllership C: proprietorship D: functional line

Q32 : If the budgeted total direct labor hours are 5500 and budgeted direct labor cost is $755000, then the budgeted direct labor cost rate is _________?

A: $138 per labor hour B: $137.27 per hour C: $140 per labor hour D: $142 per labor hour

Q33 : An amount of spoilage that is natural in any particular production process is classified as ___________?

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

Q34 : 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

Q35 : A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as _________?

A: accounting period costing system B: process costing system C: job costing system D: none of above

Q36 : The per unit opportunity cost to the selling subunit of company, is added into per unit incremental cost is incurred at point of transfer to calculate ____________?

A: minimum operating cost B: maximum operating costs C: maximum transfer price D: minimum transfer price

Q37 : An investment is multiplied to required rate of return, to calculate: _____________?

A: congruent cost of investment B: transfer cost of investment C: operating cost of investment D: imputed cost of investment

Q38 : The residual material which results from manufacturing products is called ___________?

A: reduced work B: spoilage C: rework D: scrap

Q39 : In financial accounting, the investors, banks, suppliers and government agencies are classified as _____________?

A: external parties B: internal parties C: environmental parties D: transactional parties

Q40 : 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

Q41 : 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

Q42 : 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

Q43 : The situation in which the cost object has any job, customer or product is known as _________?

A: cost application base B: sale application base C: price application base D: direct application base

Q44 : An officer responsible for financial operations of organization is considered as ___________?

A: chief financial officer B: chief manager C: chief line function D: chief staff function

Q45 : The partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called ____________?

A: spoilage B: rework C: scrap D: equivalence

Q46 : The method of pricing, when two separate pricing methods are used to price, transfer of products from one subunit to another, is called _____________?

A: dual pricing B: functional pricing C: congruent pricing D: optimal pricing

Q47 : The relevant incremental costs are added into the relevant opportunity cost of capital to calculate ___________?

A: purchase order costs B: relevant inventory carrying costs C: irrelevant inventory carrying costs D: relevant ordering costs

Q48 : An implementation of planning decisions and evaluating performance is classified as ___________?

A: control B: evaluation C: deciding D: performing

Q49 : If an actual variable quantity is 70, the actual and budgeted overhead cost of allocation is $8650 and $3500 respectively, then the variable overhead spending variance will be __________?

A: $660,500 B: $560,500 C: $460,500 D: $360,500

Q50 : The amount invested by the proprietor to start the business is called:

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

Q51 : 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

Q52 : The stage in manufacturing cycle at which journal entries are made in system of accountancy is known as _________?

A: chaining point B: recording point C: lead point D: trigger point

Q53 : An ability of an accounting system, to point out the use of resources in every step of production process is called ___________?

A: back-flush trails B: audit trails C: trigger trails D: lead manufacturing trails

Q54 : 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

Q55 : 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

Q56 : The costing system, which classify cost into cost categories in a way when an expense is incurred in the process is called ____________?

A: conversion expense costing system B: inventory costing system C: process costing system D: job costing system

Q57 : 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

Q58 : The costs associated with storage of finished goods such as spoilage, obsolescence and insurance of goods are classified as ___________?

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

Q59 : If fixed overhead allocated for actual output units is $25000 and the production volume variance is $9000, then budgeted fixed overhead will be _____________?

A: $34,000 B: $24,000 C: $16,000 D: $18,000

Q60 : If the budget sales units are 8000, the ending inventory is 2000 units and the beginning inventory is 3000, then the budget production would be ___________?

A: 11000 units B: 13000 units C: 10000 units D: 7000 units

Q61 : 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

Q62 : In management accounting, an emphasis and focus must be __________?

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

Q63 : If the budgeted annual indirect cost is $85000 and budgeted annual quantity of cost allocation base is $7500, then budgeted indirect cost rate would be __________?

A: 112.34 per piece B: 113.34 per piece C: 111.34 per piece D: 110.34 per piece

Q64 : The activities related to coordinating, controlling and planning flow of inventory are classified as ___________?

A: decisional management B: . throughput management C: inventory management D: manufacturing management

Q65 : The type of accounting which reports to external parties of the organization is known as ____________?

A: cost accounting B: decision accounting C: financial accounting D: management accounting

Q66 : The schedule of expected disbursements and cash receipts is considered as __________?

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

Q67 : The cash management, investments, long and short term financing are included in ___________?

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

Q68 : The maintenance of accounts in a systematic way is called__________?

A: Accounting B: Reading C: Book Keeping D: Auditing

Q69 : The total indirect cost in the pool by an actual quantity of cost allocation base, is used to calculate ____________?

A: actual manufacturing overhead rate B: manufacturing overhead costs C: overhead rate D: direct rate

Q70 : 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

Q71 : An energy, machine maintenance, indirect materials and engineering support are considered as ____________? 0

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

Q72 : The sum of working capital and current liabilities is equal to _____________?

A: imputed assets B: residual assets C: current assets D: nominal assets

Q73 : 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

Q74 : 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

Q75 : A situation when groups and individuals work together for achieving a particular goal can be classified as _________?

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

Q76 : 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

Q77 : The costs that are not incorporated in accounting records, but are recognized in different situations are classified as ___________?

A: congruent costs B: imputed costs C: operating costs D: transfer costs

Q78 : 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

Q79 : In a normal accounting period, the allocated amount of indirect cost is $2000 and the actual amount is $2200, it classified as __________?

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

Q80 : The cost allocation base used by an operating manager is classified as ____________?

A: machine hours B: flexible hours C: variable hours D: fixed hours

Q81 : If the total manufacturing cost is $40000 and the total units manufactured is 500 units, then the per unit cost would be __________?

A: $80 B: $70 C: $65 D: $35

Q82 : If the budgeted direct labor hours are 3550 and direct labor cost rate is $500 per labor hour, then total direct labor cost would be __________?

A: $1,775,000 B: $1,675,000 C: $1,875,000 D: $1,975,000

Q83 : The document, which contains the information about the used material sequence, detail and quantity of raw material is classified as __________?

A: bill of materials B: bill of sequence C: bill of detail D: bill of raw materials

Q84 : 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

Q85 : 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

Q86 : 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

Q87 : Goods Return by the customer are termed as :

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

Q88 : If an actual indirect cost incur is $35000 and the indirect cost allocated is $43000, then the under allocated indirect cost will be __________?

A: $78,000 B: −$78000 C: −$8000 D: $8,000

Q89 : In accounting system, a document which consists of all assigned cost for specific job is classified as __________?

A: job cost record B: job cost sheet C: source document D: both a and b

Q90 : 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

Q91 : If the required rate of return is 13%, operating income is $375000 and the total investment is $2650000, then the residual income would be ____________?

A: $30,500 B: $20,500 C: $25,500 D: $32,500

Q92 : The person to whom goods are sold on credit is called___________?

A: Buyer B: Seller C: Debtor D: Creditor

Q93 : 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

Q94 : If an average inventory is 2000 units, annual relevant carrying cost of each unit is $5, then the annual relevant carrying cost will be __________?

A: $5,000 B: $4,500 C: $5,500 D: $6,000

Q95 : In normal costing, the manufacturing overhead allocated is also called _________?

A: manufacturing overhead applied B: labor overhead applied C: cost overhead applied D: budget overhead applied

Q96 : Some of the methods used for determining transfer prices are ___________?

A: market-based transfer prices B: cost-based transfer prices C: negotiated transfer prices D: all of above

Q97 : The single or multiple units of distinct services or products are classified as _________?

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

Q98 : 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

Q99 : If the current assets are $250000 and the current liabilities are $135500, then the working capital would be ___________?

A: $3,855,500 B: $314,500 C: $214,500 D: $114,500

Q100 : An exertion for achieving a set goal is known as ____________?

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

Free Accounting MCQs Mock Test Online with Answers

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