Cost Accounting MCQs

Option A: 14%

Option B: 15%

Option C: 10%

Option D: 12%

Correct Answer: 10% ✔

Option A: normal scrap

Option B: normal spoilage

Option C: abnormal spoilage

Option D: weighted spoilage

Correct Answer: normal spoilage ✔

Option A: reduced work

Option B: spoilage

Option C: rework

Option D: scrap

Correct Answer: scrap ✔

Option A: abnormal spoilage

Option B: Gross weighted spoilage

Option C: inventoriable spoilage

Option D: partial spoilage

Correct Answer: abnormal spoilage ✔

Option A: 245.1724

Option B: 255.1724

Option C: 278.1724

Option D: 268.1724

Correct Answer: 255.1724 ✔

Option A: reduced work

Option B: spoilage

Option C: rework

Option D: scrap

Correct Answer: rework ✔

Option A: Gross weighted spoilage

Option B: inventoriable spoilage

Option C: partial spoilage

Option D: total spoilage

Correct Answer: total spoilage ✔

Option A: normal spoilage rates

Option B: abnormal spoilage rates

Option C: normal scrap rates

Option D: abnormal scrap rates

Correct Answer: normal spoilage rates ✔

Option A: normal spoilage

Option B: abnormal spoilage

Option C: weighted spoilage

Option D: both a and b

Correct Answer: both a and b ✔

Option A: spoilage

Option B: rework

Option C: scrap

Option D: equivalence

Correct Answer: spoilage ✔

Option A: abnormal spoilage

Option B: normal spoilage

Option C: transferred-in spoilage

Option D: transferred-out spoilage

Correct Answer: abnormal spoilage ✔

Option A: cost per good units transferred out

Option B: cost per good units transferred in

Option C: revenue per good units transferred out

Option D: revenue per good units transferred in

Correct Answer: cost per good units transferred out ✔

Option A: conversion costs

Option B: sunk costs

Option C: inventoriable costs

Option D: non inventoriable costs

Correct Answer: inventoriable costs ✔

Option A: inventory costing

Option B: conversion costing

Option C: normal scrap costing

Option D: abnormal scrap costing

Correct Answer: inventory costing ✔

Option A: 1200 units

Option B: 990 units

Option C: 1100 units

Option D: 1000 units

Correct Answer: 1100 units ✔

Option A: physical tracking

Option B: non-inventoriable costing

Option C: inventory costing

Option D: both a and c

Correct Answer: both a and c ✔

Option A: short lengths from wood work

Option B: defective aluminum cans recycled by manufacturer

Option C: detection of defective pieces before shipment

Option D: none of above

Correct Answer: detection of defective pieces before shipment ✔

Option A: rework point

Option B: inspection point

Option C: spoilage point

Option D: scrap point

Correct Answer: inspection point ✔

Option A: normal scrap

Option B: normal spoilage

Option C: abnormal spoilage

Option D: weighted spoilage

Correct Answer: normal spoilage ✔

Option A: short lengths from wood work

Option B: defective aluminum cans recycled by manufacturer

Option C: detection of defective pieces before shipment

Option D: all of above

Correct Answer: defective aluminum cans recycled by manufacturer ✔

Option A: conversion costs

Option B: sunk costs

Option C: inventoriable costs

Option D: non inventoriable costs

Correct Answer: inventoriable costs ✔

Option A: Gross weighted margin

Option B: weighted average revenue

Option C: weighted average cost

Option D: weighted average conversion cost

Correct Answer: weighted average cost ✔

Option A: conversion expense costing system

Option B: inventory costing system

Option C: process costing system

Option D: job costing system

Correct Answer: process costing system ✔

Option A: summarize flow of output

Option B: compute output in units

Option C: summarize total costs

Option D: compute cost for each equivalent unit

Correct Answer: summarize total costs ✔

Option A: $10

Option B: $100

Option C: $1,000

Option D: $1,200

Correct Answer: $10 ✔

Option A: $16

Option B: $60

Option C: $6

Option D: $26

Correct Answer: $6 ✔

Option A: summarize total costs

Option B: compute cost for each equivalent unit

Option C: summarize flow of output

Option D: compute output in units

Correct Answer: compute output in units ✔

Option A: weighted average method

Option B: net present value method

Option C: Gross production method

Option D: net present value method

Correct Answer: weighted average method ✔

Option A: summarize total costs

Option B: compute cost for each equivalent unit

Option C: summarize flow of output

Option D: compute output in units

Correct Answer: compute cost for each equivalent unit ✔

Option A: allocate separable costs

Option B: allocate joint costs

Option C: compute gross margin

Option D: assign total cost to completed units

Correct Answer: assign total cost to completed units ✔

Option A: partial work costs

Option B: transferred-in costs

Option C: transferred-out costs

Option D: weighted average costs

Correct Answer: transferred-in costs ✔

Option A: 1800 units

Option B: 2300 units

Option C: 10300 units

Option D: 1500 units

Correct Answer: 2300 units ✔

Option A: 1800 units

Option B: 1500 units

Option C: 1300 units

Option D: 1500 units

Correct Answer: 1300 units ✔

Option A: transferred-in costs

Option B: transferred-out costs

Option C: FIFO costs

Option D: LIFO costs

Correct Answer: transferred-in costs ✔

Option A: cost of indirect labor

Option B: cost of direct labor

Option C: cost of direct material

Option D: unit costs

Correct Answer: unit costs ✔

Option A: accounting period costing system

Option B: process costing system

Option C: job costing system

Option D: none of above

Correct Answer: process costing system ✔

Option A: summarize flow of output

Option B: compute output in units

Option C: summarize total costs

Option D: compute cost for each equivalent unit

Correct Answer: summarize flow of output ✔

Option A: partial inventory costing method

Option B: current period inventory method

Option C: Last-in, first-out method

Option D: First-in, first-out method

Correct Answer: First-in, first-out method ✔

Option A: conversion process

Option B: operation

Option C: hybridization

Option D: both a and b

Correct Answer: operation ✔

Option A: incremental costing system

Option B: split off costing system

Option C: inventoriable costing system

Option D: operation costing system

Correct Answer: operation costing system ✔

Option A: weighted costing system

Option B: average costing system

Option C: hybrid costing system

Option D: double costing system

Correct Answer: hybrid costing system ✔

Option A: market equity

Option B: total assets employed

Option C: total assets available

Option D: stockholders’ equity

Correct Answer: total assets employed ✔

Option A: interactive control system

Option B: belief systems

Option C: boundary systems

Option D: diagnostic control systems

Correct Answer: interactive control system ✔

Option A: net income

Option B: after tax income

Option C: residual income

Option D: operating income

Correct Answer: residual income ✔

Option A: net income

Option B: nominal income

Option C: residual income

Option D: residual investment

Correct Answer: residual income ✔

Option A: weighted average cost of capital

Option B: economic value added

Option C: after-tax operating income

Option D: net income

Correct Answer: weighted average cost of capital ✔

Option A: intrinsic motivation

Option B: extrinsic motivation

Option C: monetary motivation

Option D: bounded motivation

Correct Answer: intrinsic motivation ✔

Option A: return on sales

Option B: investment turnover

Option C: residual income

Option D: return on investment

Correct Answer: return on investment ✔

Option A: $113,000

Option B: $643,000

Option C: $743,000

Option D: $543,000

Correct Answer: $643,000 ✔

Option A: DuPont investment

Option B: return on investment

Option C: investment

Option D: investment turnover

Correct Answer: investment ✔

Option A: current liabilities

Option B: long-term liabilities

Option C: residual assets value

Option D: net residual income

Correct Answer: current liabilities ✔

Option A: $3,855,500

Option B: $314,500

Option C: $214,500

Option D: $114,500

Correct Answer: $114,500 ✔

Option A: opportunity cost of capital

Option B: working capital

Option C: total long term assets

Option D: weighted average cost of capital

Correct Answer: working capital ✔

Option A: interactive control system

Option B: belief system

Option C: boundary system

Option D: diagnostic control system

Correct Answer: belief system ✔

Option A: 8.24%

Option B: 7.24%

Option C: 9.24%

Option D: 10.24%

Correct Answer: 8.24% ✔

Option A: residual income

Option B: return on after-tax operating income

Option C: return on sales

Option D: return on investment

Correct Answer: return on sales ✔

Option A: $30,500

Option B: $20,500

Option C: $25,500

Option D: $32,500

Correct Answer: $30,500 ✔

Option A: accrual accounting rate of return

Option B: accounting rate of return

Option C: nominal rate of return

Option D: both a and b

Correct Answer: both a and b ✔

Option A: interactive control system

Option B: belief system

Option C: boundary system

Option D: diagnostic control system

Correct Answer: boundary system ✔

Option A: imputed assets

Option B: residual assets

Option C: current assets

Option D: nominal assets

Correct Answer: current assets ✔

Option A: residual income

Option B: return on investment

Option C: return on sales

Option D: investment turnover

Correct Answer: return on investment ✔

Option A: interactive control systems

Option B: belief systems

Option C: boundary systems

Option D: diagnostic control systems

Correct Answer: diagnostic control systems ✔

Option A: $142,020

Option B: $172,020

Option C: $162,020

Option D: $152,020

Correct Answer: $172,020 ✔

Option A: congruent costs

Option B: imputed costs

Option C: operating costs

Option D: transfer costs

Correct Answer: imputed costs ✔

Option A: $501,500

Option B: $401,500

Option C: $201,500

Option D: $301,500

Correct Answer: $201,500 ✔

Option A: return on sales * investment turnover

Option B: return on sales + investment turnover

Option C: return on sales – investment turnover

Option D: investment turnover + residual income

Correct Answer: return on sales * investment turnover ✔

Option A: congruent cost of investment

Option B: transfer cost of investment

Option C: operating cost of investment

Option D: imputed cost of investment

Correct Answer: imputed cost of investment ✔

Option A: flexible costs

Option B: variable costs

Option C: overhead costs

Option D: fixed costs

Correct Answer: overhead costs ✔

Option A: variable overhead cost

Option B: fixed overhead cost

Option C: fixed batch cost

Option D: variable batch cost

Correct Answer: variable overhead cost ✔

Option A: variable overhead cost

Option B: fixed overhead cost

Option C: fixed batch cost

Option D: variable batch cost

Correct Answer: variable overhead cost ✔

Option A: $15,000

Option B: $35,000

Option C: $65,000

Option D: $75,000

Correct Answer: $65,000 ✔

Option A: actual cost budget

Option B: flexible budget variance

Option C: inflexible budget

Option D: hourly budget

Correct Answer: flexible budget variance ✔

Option A: overhead flexible budget variance

Option B: overhead fixed budget variance

Option C: overhead flexible cost variance

Option D: overhead flexible price variance

Correct Answer: overhead flexible budget variance ✔

Option A: machine hours

Option B: flexible hours

Option C: variable hours

Option D: fixed hours

Correct Answer: machine hours ✔

Option A: constant costing

Option B: standard costing

Option C: unit costing

Option D: batch costing

Correct Answer: standard costing ✔

Option A: manufacturing costs incurred

Option B: variable costs incurred

Option C: fixed costs incurred

Option D: actual costs incurred

Correct Answer: actual costs incurred ✔

Option A: fixed batch cost

Option B: variable batch cost

Option C: variable overhead cost

Option D: fixed overhead cost

Correct Answer: fixed overhead cost ✔

Option A: anticipated budgeting

Option B: number budgeting

Option C: predict budgeting

Option D: kaizen budgeting

Correct Answer: kaizen budgeting ✔

Option A: financial budget

Option B: capital budget

Option C: cash flows budget

Option D: balanced budget

Correct Answer: financial budget ✔

Option A: analysis of batches

Option B: analysis of batches

Option C: analysis of products

Option D: making predictions about future

Correct Answer: making predictions about future ✔

Option A: $5,000

Option B: $35,000

Option C: $15,000

Option D: $45,000

Correct Answer: $35,000 ✔

Option A: implementing income

Option B: implementing the decision

Option C: efficient implementation

Option D: effective implementation

Correct Answer: implementing the decision ✔

Option A: bill of materials

Option B: bill of sequence

Option C: bill of detail

Option D: bill of raw materials

Correct Answer: bill of materials ✔

Option A: action plan

Option B: strategy

Option C: step wise plan

Option D: complex plan

Correct Answer: complex plan ✔

Option A: focused statement

Option B: slack statement

Option C: budgeted income statement

Option D: operating budget

Correct Answer: operating budget ✔

Option A: budget production

Option B: planned production

Option C: setup production

Option D: stand by production

Correct Answer: budget production ✔

Option A: high incentive bonus

Option B: low incentive bonus

Option C: influence bonus

Option D: revenue bonus

Correct Answer: high incentive bonus ✔

Option A: cost budget

Option B: material list

Option C: revenue budget

Option D: list of investors

Correct Answer: revenue budget ✔

Option A: complexity

Option B: process

Option C: budget

Option D: batching

Correct Answer: budget ✔

Option A: profit plan

Option B: sales plan

Option C: cost plan

Option D: marketing plan

Correct Answer: profit plan ✔

Option A: cost slack

Option B: target slack

Option C: budgetary slack

Option D: revenue slack

Correct Answer: budgetary slack ✔

Option A: intelligent interpretations

Option B: participation

Option C: persuasion

Option D: all of above

Correct Answer: all of above ✔

Option A: to be implemented

Option B: based on current practice

Option C: based on past prices

Option D: based on sold quantity

Correct Answer: to be implemented ✔

Option A: controllability

Option B: influential power

Option C: responsibility

Option D: all of above

Correct Answer: controllability ✔

Option A: advantages of budget

Option B: disadvantages of budget

Option C: advantages of costing method

Option D: disadvantages of costing method

Correct Answer: advantages of budget ✔

Option A: total goods manufactured

Option B: total cash available

Option C: total revenue

Option D: total goods sold

Correct Answer: total cash available ✔

Option A: price disbursements

Option B: cash disbursements

Option C: budget disbursements

Option D: goods disbursements

Correct Answer: cash disbursements ✔

Option A: investment planning models

Option B: financial planning models

Option C: cost planning models

Option D: revenues forecast models

Correct Answer: financial planning models ✔

Option A: choose alternatives

Option B: evaluate alternatives

Option C: efficiency improvements

Option D: predicted improvements

Correct Answer: choose alternatives ✔

Option A: rolling budget

Option B: pin budget

Option C: specific budget

Option D: past budget

Correct Answer: rolling budget ✔