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Basics Of Accounting MCQs

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1

The material or anything for which cost is to be measured is known as __________?

Option A: measurement object

Option B: cost object

Option C: accounting object

Option D: budget object

Correct Answer: cost object ✔


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2

In accounting, the cost incurred in past or in historical financial statements is classified as ________?

Option A: actual cost

Option B: budgeted cost

Option C: past cost

Option D: incurred cost

Correct Answer: actual cost ✔


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3

The direct cost assignment for specific cost object is classified as __________?

Option A: cost object line cost

Option B: cost tracing

Option C: cost object indirect cost

Option D: cost object staff cost

Correct Answer: cost tracing ✔


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4

In production, the variables such as level of activity or volume of company activity are known as ________?

Option A: cost drivers

Option B: timed drivers

Option C: variable drivers

Option D: fixed drivers

Correct Answer: cost drivers ✔


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5

In accounting, the resources sacrifice for achieving or fulfill specific objective is known as _________

Option A: source cost

Option B: sacrifice cost

Option C: treated cost

Option D: cost

Correct Answer: cost ✔


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6

The cost which is related to specific cost object and cannot be economically traceable is classified as ________?

Option A: line cost

Option B: staff cost

Option C: direct cost

Option D: indirect cost

Correct Answer: direct cost ✔


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7

The cost which remains unchanged, in proportion to level the total volume of production is classified as _________?

Option A: total cost

Option B: infeasible cost

Option C: fixed cost

Option D: variable cost

Correct Answer: fixed cost ✔


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8

The costs are classified as fixed or variable on the basis of __________?

Option A: specific activity

Option B: given time period

Option C: common activity

Option D: both a and b

Correct Answer: both a and b ✔


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9

The cost, which is related to specific cost object and economically traceable, will be classified as _________?

Option A: direct cost

Option B: indirect cost

Option C: line cost

Option D: staff cost

Correct Answer: direct cost ✔


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10

The cost which is changed in proportion to level the total volume is __________?

Option A: fixed cost

Option B: variable cost

Option C: total cost

Option D: infeasible cost

Correct Answer: variable cost ✔


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11

The process of tracing the direct costs and allocation of indirect costs is known as __________?

Option A: cost assignment

Option B: direct assignment

Option C: indirect assignment

Option D: economic assignment

Correct Answer: cost assignment ✔


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12

In accounting, the cost which is predicted to be incurred or future cost is known as ________?

Option A: past cost

Option B: incurred cost

Option C: actual cost

Option D: budgeted cost

Correct Answer: budgeted cost ✔


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13

The process of assigning the indirect costs to any specific cost object is known as __________?

Option A: economic cost

Option B: cost tracing

Option C: cost allocation

Option D: non-economic costs

Correct Answer: cost allocation ✔


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14

The relationship between change in activity and change in total costs is considered as __________?

Option A: fixed relationship

Option B: cause and effect relationship

Option C: ineffective relationship

Option D: variable relationship

Correct Answer: cause and effect relationship ✔


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15

According to accounting system the collection of cost data, in an organized way is classified as __________?

Option A: system accumulation

Option B: accumulated data

Option C: cost accumulation

Option D: organized accumulation

Correct Answer: cost accumulation ✔


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