Cost Accounting MCQs

Option A: manufacturing cost

Option B: super variable costing

Option C: throughput costing

Option D: both B and C

Correct Answer: both B and C ✔

Option A: 2500 units

Option B: 2000 units

Option C: 1000 units

Option D: 1500 units

Correct Answer: 1000 units ✔

Option A: high dividend

Option B: low dividend

Option C: inventoriable

Option D: non-inventoriable

Correct Answer: inventoriable ✔

Option A: accrual cost

Option B: incurred cost

Option C: period costs

Option D: setup costs

Correct Answer: period costs ✔

Option A: increase in units sold

Option B: change in quantity of sold units

Option C: increase in units manufactured

Option D: decease in units manufactured

Correct Answer: change in quantity of sold units ✔

Option A: output demanded

Option B: input demanded

Option C: capacity supplied

Option D: capacity borrowed

Correct Answer: output demanded ✔

Option A: standard capacity

Option B: actual capacity

Option C: normal capacity

Option D: theoretical costing

Correct Answer: theoretical costing ✔

Option A: actual costing method

Option B: normal costing method

Option C: direct costing method

Option D: indirect costing method

Correct Answer: actual costing method ✔

Option A: direct costing method

Option B: indirect costing method

Option C: actual costing method

Option D: normal costing method

Correct Answer: normal costing method ✔

Option A: capacity write down

Option B: capacity write up

Option C: capacity supplied

Option D: capacity borrowed

Correct Answer: capacity supplied ✔

Option A: production exceeds breakeven sales

Option B: breakeven sales exceeds production

Option C: price exceeds cost

Option D: cost exceeds price

Correct Answer: production exceeds breakeven sales ✔

Option A: budgeted production units

Option B: indirect production units

Option C: input material units

Option D: accrued production units

Correct Answer: budgeted production units ✔

Option A: negative income value

Option B: lower income

Option C: higher income

Option D: zero dividends

Correct Answer: higher income ✔

Option A: indirect labor cost of goods sold

Option B: direct labor cost of goods sold

Option C: direct material cost of goods sold

Option D: indirect material cost of goods sold

Correct Answer: direct material cost of goods sold ✔

Option A: throughput costing

Option B: unit costing

Option C: batch costing

Option D: manufacturing costing

Correct Answer: throughput costing ✔

Option A: $363,000

Option B: $463,000

Option C: $393,000

Option D: $493,000

Correct Answer: $363,000 ✔

Option A: $4,000

Option B: $1,000

Option C: $2,000

Option D: $3,000

Correct Answer: $1,000 ✔

Option A: denominator

Option B: numerator

Option C: multiplier

Option D: equalizer

Correct Answer: denominator ✔

Option A: fixed direct manufacturing cost

Option B: variable direct manufacturing cost

Option C: fixed indirect manufacturing cost

Option D: variable indirect manufacturing cost

Correct Answer: fixed direct manufacturing cost ✔

Option A: $250,000

Option B: $350,000

Option C: $300,000

Option D: $400,000

Correct Answer: $300,000 ✔

Option A: $8,150

Option B: $23,150

Option C: $33,150

Option D: $13,150

Correct Answer: $23,150 ✔

Option A: fixed material price

Option B: variable materials price

Option C: fixed production units

Option D: budgeted production units

Correct Answer: budgeted production units ✔

Option A: pricing decisions

Option B: marketing decisions

Option C: financial decisions

Option D: cost budgeting decisions

Correct Answer: pricing decisions ✔

Option A: standard deviation

Option B: variances

Option C: mean average

Option D: weighted average

Correct Answer: variances ✔

Option A: cost center

Option B: revenue center

Option C: profit center

Option D: investment center

Correct Answer: profit center ✔

Option A: cost center

Option B: revenue center

Option C: profit center

Option D: investment center

Correct Answer: cost center ✔

Option A: activity subordinates

Option B: broader responsibility center

Option C: broader subordinates

Option D: activity ordinates

Correct Answer: broader responsibility center ✔

Option A: evaluating strategy

Option B: performing strategy

Option C: warned strategy

Option D: weighted strategy

Correct Answer: evaluating strategy ✔

Option A: sales department

Option B: investing center

Option C: marketing department

Option D: segment department

Correct Answer: sales department ✔

Option A: profit center

Option B: investment center

Option C: cost center

Option D: revenue center

Correct Answer: revenue center ✔

Option A: employee suggestion

Option B: customer suggestion

Option C: cost suggestion

Option D: price suggestion

Correct Answer: employee suggestion ✔

Option A: budgeted accounting

Option B: action accounting

Option C: planned accounting

Option D: responsibility accounting

Correct Answer: responsibility accounting ✔

Option A: strategic implementation

Option B: proper implementation

Option C: performance evaluation

Option D: well evaluated

Correct Answer: performance evaluation ✔

Option A: company structure

Option B: organization structure

Option C: line of authority

Option D: line of responsibility

Correct Answer: organization structure ✔

Option A: varied warning

Option B: times warning

Option C: managers warning

Option D: early warning

Correct Answer: early warning ✔

Option A: subunit center

Option B: instruction center

Option C: responsibility center

Option D: activity segment

Correct Answer: responsibility center ✔

Option A: coordinating the company effort

Option B: action plan

Option C: action accountability

Option D: project accountability

Correct Answer: coordinating the company effort ✔

Option A: profit center

Option B: investment center

Option C: cost center

Option D: revenue center

Correct Answer: investment center ✔

Option A: measurement object

Option B: cost object

Option C: accounting object

Option D: budget object

Correct Answer: cost object ✔

Option A: actual cost

Option B: budgeted cost

Option C: past cost

Option D: incurred cost

Correct Answer: actual cost ✔

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 ✔

Option A: cost drivers

Option B: timed drivers

Option C: variable drivers

Option D: fixed drivers

Correct Answer: cost drivers ✔

Option A: source cost

Option B: sacrifice cost

Option C: treated cost

Option D: cost

Correct Answer: cost ✔

Option A: line cost

Option B: staff cost

Option C: direct cost

Option D: indirect cost

Correct Answer: direct cost ✔

Option A: total cost

Option B: infeasible cost

Option C: fixed cost

Option D: variable cost

Correct Answer: fixed cost ✔

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 ✔

Option A: direct cost

Option B: indirect cost

Option C: line cost

Option D: staff cost

Correct Answer: direct cost ✔

Option A: fixed cost

Option B: variable cost

Option C: total cost

Option D: infeasible cost

Correct Answer: variable cost ✔

Option A: cost assignment

Option B: direct assignment

Option C: indirect assignment

Option D: economic assignment

Correct Answer: cost assignment ✔

Option A: past cost

Option B: incurred cost

Option C: actual cost

Option D: budgeted cost

Correct Answer: budgeted cost ✔

Option A: economic cost

Option B: cost tracing

Option C: cost allocation

Option D: non-economic costs

Correct Answer: cost allocation ✔

Option A: fixed relationship

Option B: cause and effect relationship

Option C: ineffective relationship

Option D: variable relationship

Correct Answer: cause and effect relationship ✔

Option A: system accumulation

Option B: accumulated data

Option C: cost accumulation

Option D: organized accumulation

Correct Answer: cost accumulation ✔

Option A: 0.9

Option B: 0.4

Option C: 0.3

Option D: 0.8

Correct Answer: 0.4 ✔

Option A: theory of contribution

Option B: theory of constraints

Option C: theory of conflicts

Option D: theory of maximization

Correct Answer: theory of constraints ✔

Option A: rework costs

Option B: prevention costs

Option C: incremental costs

Option D: reengineering costs

Correct Answer: prevention costs ✔

Option A: prevention costs

Option B: external failure costs

Option C: appraisal costs

Option D: internal failure costs

Correct Answer: external failure costs ✔

Option A: 0.8125

Option B: 0.6125

Option C: 0.9125

Option D: 1.725

Correct Answer: 0.8125 ✔

Option A: value chain efficiency

Option B: value chain effectivity

Option C: manufacturing cycle effectivity

Option D: manufacturing cycle efficiency

Correct Answer: manufacturing cycle efficiency ✔

Option A: component and material factors

Option B: machine-related factors

Option C: human factors

Option D: all of above

Correct Answer: all of above ✔

Option A: $5,000

Option B: $14,000

Option C: $4,000

Option D: $9,000

Correct Answer: $4,000 ✔

Option A: customer measures

Option B: financial measures

Option C: measures of growth and learning

Option D: measures of internal business processes

Correct Answer: customer measures ✔

Option A: costs of quality

Option B: costs of learning

Option C: costs of reengineering

Option D: costs of spoilage inventory

Correct Answer: costs of quality ✔

Option A: manufacturing cycle efficiency

Option B: value added manufacturing time

Option C: responding time

Option D: delivery time

Correct Answer: value added manufacturing time ✔

Option A: relevant costing diagram

Option B: cause and effect diagram

Option C: control chart

Option D: pareto diagram

Correct Answer: control chart ✔

Option A: measures of growth and learning

Option B: measures of internal business processes

Option C: customer measures

Option D: financial measures

Correct Answer: measures of internal business processes ✔

Option A: manufacturing lead time

Option B: manufacturing cycle time

Option C: customer response time

Option D: system process time

Correct Answer: customer response time ✔

Option A: employee satisfaction

Option B: employee turnover

Option C: employee training

Option D: employee failures

Correct Answer: employee satisfaction ✔

Option A: throughput costs

Option B: investments

Option C: operating costs

Option D: marginal costs

Correct Answer: investments ✔

Option A: statistical process control

Option B: statistical failure control

Option C: statistical control of prevention cost

Option D: statistical control of sunk cost

Correct Answer: statistical process control ✔

Option A: manufacturing efficiency time

Option B: manufacturing cycle time

Option C: responding time

Option D: value chain time

Correct Answer: manufacturing cycle time ✔

Option A: measures of growth and learning

Option B: measures of internal business processes

Option C: customer measures

Option D: financial measures

Correct Answer: financial measures ✔

Option A: employee turnover ratio

Option B: employee empowerment ratio

Option C: employee satisfaction ratio

Option D: employee training percentage

Correct Answer: employee turnover ratio ✔

Option A: 0.6

Option B: 0.5

Option C: 0.2

Option D: 0.7

Correct Answer: 0.2 ✔

Option A: throughput costs

Option B: investments

Option C: operating costs

Option D: marginal costs

Correct Answer: operating costs ✔

Option A: statistical process control

Option B: statistical failure control

Option C: statistical control of prevention cost

Option D: statistical control of sunk cost

Correct Answer: statistical process control ✔

Option A: 42.625

Option B: 36.724

Option C: 32.625

Option D: 41.625

Correct Answer: 32.625 ✔

Option A: relevant costing diagram

Option B: cause and effect diagram

Option C: control chart

Option D: Pareto chart

Correct Answer: Pareto chart ✔

Option A: effective performance

Option B: efficient performance

Option C: in-time performance

Option D: on-time performance

Correct Answer: on-time performance ✔

Option A: manufacturing lead time

Option B: manufacturing cycle efficiency

Option C: customer response time

Option D: system process time

Correct Answer: manufacturing lead time ✔

Option A: appraisal costs

Option B: internal and external failure costs

Option C: prevention costs

Option D: all of above

Correct Answer: all of above ✔

Option A: 94%

Option B: 93%

Option C: 95%

Option D: 97.50%

Correct Answer: 97.50% ✔

Option A: prevention costs

Option B: external failure costs

Option C: appraisal costs

Option D: internal failure costs

Correct Answer: internal failure costs ✔

Option A: measures of growth and learning

Option B: measures of internal business processes

Option C: customer measures

Option D: financial measures

Correct Answer: measures of growth and learning ✔

Option A: prevention costs

Option B: external failure costs

Option C: appraisal costs

Option D: internal failure costs

Correct Answer: appraisal costs ✔

Option A: responding time

Option B: value chain time

Option C: delivery time

Option D: manufacturing cycle efficiency

Correct Answer: delivery time ✔

Option A: learning quality

Option B: design quality

Option C: conformance quality

Option D: business process quality

Correct Answer: conformance quality ✔

Option A: employee turnover ratio

Option B: employee empowerment ratio

Option C: employee satisfaction ratio

Option D: employee training percentage

Correct Answer: employee empowerment ratio ✔

Option A: design quality

Option B: conformance quality

Option C: scorecard quality

Option D: both A and D

Correct Answer: both A and D ✔

Option A: throughput contribution

Option B: operating cost contribution

Option C: operating contribution

Option D: marginal contribution

Correct Answer: throughput contribution ✔

Option A: relevant costing diagram

Option B: cause and effect diagram

Option C: control chart

Option D: Pareto diagram

Correct Answer: cause and effect diagram ✔

Option A: learning quality

Option B: design quality

Option C: conformance quality

Option D: business process quality

Correct Answer: design quality ✔

Option A: $14,500

Option B: $135,000

Option C: $125,000

Option D: $12,500

Correct Answer: $125,000 ✔

Option A: potential entrants in market

Option B: customer’s bargaining power

Option C: supplier’s bargaining power

Option D: all of above

Correct Answer: all of above ✔

Option A: internal process component

Option B: growth component

Option C: price recovery component

Option D: productivity component

Correct Answer: price recovery component ✔

Option A: targeted productivity

Option B: total factor productivity

Option C: partial productivity

Option D: unused productivity

Correct Answer: partial productivity ✔

Option A: 0.642 unit of jacket per ² of leather

Option B: 0.342 unit of jacket per ² of leather

Option C: 0.442 unit of jacket per ² of leather

Option D: 0.542 unit of jacket per ² of leather

Correct Answer: 0.642 unit of jacket per ² of leather ✔

Option A: employee turnover rates

Option B: operating capabilities and number of patents

Option C: operating income and revenue growth

Option D: customer satisfaction and market share

Correct Answer: operating income and revenue growth ✔

Option A: engineered productivity

Option B: targeted productivity

Option C: partial productivity

Option D: total factor productivity

Correct Answer: total factor productivity ✔

Option A: inelastic demand

Option B: product differentiation

Option C: cost leadership

Option D: elastic demand

Correct Answer: cost leadership ✔