Cost Accounting

BASIC ACCOUNTING CONCEPTS MCQs

Total Questions : 79

Page 1 of 8 pages
Question 1. An arrangement of line of authority within the company is classified as
  1.    company structure
  2.    organization structure
  3.    line of authority
  4.    line of responsibility
 Discuss Question
Answer is Option B. -> organization structure
Answer: (b).organization structure
Question 2. The variance used by managers to check whether the company has performed well and properly implemented the strategies is considered as
  1.    strategic implementation
  2.    proper implementation
  3.    performance evaluation
  4.    well evaluated
 Discuss Question
Answer is Option C. -> performance evaluation
Answer: (c).performance evaluation
Question 3. The system which measures the budget, action and plan of each responsibility center is known as
  1.    budgeted accounting
  2.    action accounting
  3.    planned accounting
  4.    responsibility accounting
 Discuss Question
Answer is Option D. -> responsibility accounting
Answer: (d).responsibility accounting
Question 4. The significant feature of Kaizen Budgeting is
  1.    employee suggestion
  2.    customer suggestion
  3.    cost suggestion
  4.    price suggestion
 Discuss Question
Answer is Option A. -> employee suggestion
Answer: (a).employee suggestion
Question 5. The manager who is responsible only for the revenues of the company can be categorized under the
  1.    profit center
  2.    investment center
  3.    cost center
  4.    revenue center
 Discuss Question
Answer is Option D. -> revenue center
Answer: (d).revenue center
Question 6. The costs which are considered as expenses in the accounting period are also known as
  1.    inventory costs
  2.    period costs
  3.    timed costs
  4.    labor overheads
 Discuss Question
Answer is Option B. -> period costs
Answer: (b).period costs
Question 7. The direct manufacturing labor costs is $40000 and manufacturing overhead cost is $7000, then conversion cost would be
  1.    $47,000
  2.    $33,000
  3.    $57,000
  4.    $18,000
 Discuss Question
Answer is Option A. -> $47,000
Answer: (a).$47,000
Question 8. If the direct material cost is $5500 and the prime cost is $25000, then the direct manufacturing labor would be
  1.    $19,500
  2.    $30,500
  3.    $45,500
  4.    $22,500
 Discuss Question
Answer is Option A. -> $19,500
Answer: (a).$19,500
Question 9. The health care premium for workers and the pension costs are included in
  1.    payroll fringe costs
  2.    health costs
  3.    premium costs
  4.    workers costs
 Discuss Question
Answer is Option A. -> payroll fringe costs
Answer: (a).payroll fringe costs
Question 10. All the costs, which are assigned to manufactured products for specific calculations are classified as
  1.    contracting costs
  2.    product cost
  3.    government costs
  4.    marketing costs
 Discuss Question
Answer is Option B. -> product cost
Answer: (b).product cost