Cost Accounting MCQs

Option A: identify the product

Option B: identify the problem

Option C: identify the quartiles

Option D: identify the percentiles

Correct Answer: identify the problem ✔

Option A: budgetary slack

Option B: costly slack

Option C: influential slack

Option D: target slack

Correct Answer: budgetary slack ✔

Option A: planned schedule

Option B: cash budget

Option C: market budget

Option D: price schedule

Correct Answer: cash budget ✔

Option A: marketing center

Option B: financial center

Option C: responsibility center

Option D: planning center

Correct Answer: responsibility center ✔

Option A: cash receipts

Option B: budget receipts

Option C: goods manufactured

Option D: total goods sold

Correct Answer: cash receipts ✔

Option A: 11000 units

Option B: 13000 units

Option C: 10000 units

Option D: 7000 units

Correct Answer: 7000 units ✔

Option A: annual profit plan

Option B: budgeting

Option C: coordination

Option D: complex plan

Correct Answer: coordination ✔

Option A: plan coordination

Option B: plan accounts

Option C: obtain information

Option D: coverage information

Correct Answer: obtain information ✔

Option A: annual budget

Option B: operating budget

Option C: specific budget

Option D: master budget

Correct Answer: master budget ✔

Option A: change analysis

Option B: original analysis

Option C: sensitivity analysis

Option D: predicted analysis

Correct Answer: sensitivity analysis ✔

Option A: serial correlation

Option B: marketing plan

Option C: financial plan

Option D: both B and C

Correct Answer: both B and C ✔

Option A: 6000 units

Option B: 4000 units

Option C: no units

Option D: 8000 units

Correct Answer: 4000 units ✔

Option A: focused accounting

Option B: responsibility accounting

Option C: information accounting

Option D: blame accounting

Correct Answer: responsibility accounting ✔

Option A: math plan model

Option B: financial planning models

Option C: operating plan models

Option D: master plan models

Correct Answer: financial planning models ✔

Option A: complexity

Option B: process

Option C: budget

Option D: batching

Correct Answer: budget ✔

Option A: coordination

Option B: communication

Option C: annual profit plan

Option D: budgeting

Correct Answer: communication ✔

Option A: budget

Option B: batching

Option C: complexity

Option D: process

Correct Answer: budget ✔

Option A: cost statement

Option B: preformed statement

Option C: sales statement

Option D: market statement

Correct Answer: preformed statement ✔

Option A: market budget

Option B: price schedule

Option C: planned schedule

Option D: cash budget

Correct Answer: cash budget ✔

Option A: 4000 units

Option B: 5000 units

Option C: 8000 units

Option D: 10000 units

Correct Answer: 8000 units ✔

Option A: cost based budgeting

Option B: activity based budgeting

Option C: production based budgeting

Option D: raw material budgeting

Correct Answer: activity based budgeting ✔

Option A: period budget

Option B: batch budget

Option C: discontinued budget

Option D: continuous budget

Correct Answer: continuous budget ✔

Option A: direct manufacturing labor-hours

Option B: setup labor-hours

Option C: budgeted labor-hours

Option D: both a and b

Correct Answer: both a and b ✔

Option A: manager cost

Option B: influential cost

Option C: center cost

Option D: controllable cost

Correct Answer: controllable cost ✔

Option A: decentralization

Option B: centralization

Option C: autonomy

Option D: congruency

Correct Answer: autonomy ✔

Option A: dysfunctional decision making

Option B: congruent decision making

Option C: incongruent decision making

Option D: both a and c

Correct Answer: both a and c ✔

Option A: total autonomy

Option B: total centralization

Option C: total decentralization

Option D: total congruency

Correct Answer: total centralization ✔

Option A: decentralization

Option B: centralization

Option C: autonomy of effort

Option D: congruency

Correct Answer: decentralization ✔

Option A: mobile products

Option B: dysfunctional products

Option C: intermediate product

Option D: territorial product

Correct Answer: intermediate product ✔

Option A: incongruent decision making

Option B: functional decision making

Option C: congruent decision making

Option D: duplication decision making

Correct Answer: incongruent decision making ✔

Option A: motivation

Option B: goal congruence

Option C: effort

Option D: autonomy

Correct Answer: effort ✔

Option A: $45

Option B: $110

Option C: $20

Option D: $65

Correct Answer: $110 ✔

Option A: motivation

Option B: goal congruence

Option C: effort

Option D: autonomy

Correct Answer: goal congruence ✔

Option A: market-based transfer prices

Option B: cost-based transfer prices

Option C: negotiated transfer prices

Option D: all of above

Correct Answer: all of above ✔

Option A: minimum operating cost

Option B: maximum operating costs

Option C: maximum transfer price

Option D: minimum transfer price

Correct Answer: minimum transfer price ✔

Option A: total autonomy

Option B: total centralization

Option C: total decentralization

Option D: total congruency

Correct Answer: total decentralization ✔

Option A: subunit autonomy cost

Option B: transfer price

Option C: performance prices

Option D: effort cost

Correct Answer: transfer price ✔

Option A: customer control system

Option B: business control system

Option C: financial control system

Option D: management control systems

Correct Answer: management control systems ✔

Option A: dual pricing

Option B: functional pricing

Option C: congruent pricing

Option D: optimal pricing

Correct Answer: dual pricing ✔

Option A: motivation

Option B: goal congruence

Option C: effort

Option D: autonomy

Correct Answer: motivation ✔

Option A: communicating company position to investors

Option B: helping managers make decisions

Option C: future oriented

Option D: single person orientation

Correct Answer: communicating company position to investors ✔

Option A: supply efficiency

Option B: material affectivity

Option C: processing effective

Option D: cost and efficiency

Correct Answer: cost and efficiency ✔

Option A: control

Option B: evaluation

Option C: deciding

Option D: performing

Correct Answer: control ✔

Option A: researching

Option B: marketing

Option C: acquaintance

Option D: usefulness

Correct Answer: marketing ✔

Option A: marketing management

Option B: production management

Option C: staff management

Option D: line management

Correct Answer: staff management ✔

Option A: financial accounting

Option B: management accounting

Option C: cost accounting

Option D: decision accounting

Correct Answer: management accounting ✔

Option A: product design

Option B: research steps

Option C: useful chain

Option D: value added

Correct Answer: product design ✔

Option A: material accounting

Option B: cost accounting

Option C: supplies accounting

Option D: business accounting

Correct Answer: cost accounting ✔

Option A: line function

Option B: staff function

Option C: asset function

Option D: investment function

Correct Answer: line function ✔

Option A: staff management

Option B: line management

Option C: marketing management

Option D: production management

Correct Answer: line management ✔

Option A: proprietorship

Option B: functional line

Option C: treasury

Option D: controllership

Correct Answer: treasury ✔

Option A: addressing management

Option B: research and development

Option C: value development

Option D: service provider

Correct Answer: research and development ✔

Option A: future oriented

Option B: past oriented

Option C: communication oriented

Option D: bank oriented

Correct Answer: future oriented ✔

Option A: customer services

Option B: utility services

Option C: resource services

Option D: acquiring services

Correct Answer: customer services ✔

Option A: manager ship

Option B: controllership

Option C: proprietorship

Option D: functional line

Correct Answer: controllership ✔

Option A: chief financial officer

Option B: chief manager

Option C: chief line function

Option D: chief staff function

Correct Answer: chief financial officer ✔

Option A: past management

Option B: future management

Option C: help management

Option D: cost management

Correct Answer: cost management ✔

Option A: flow chart analysis

Option B: supply chain analysis

Option C: resource chain analysis

Option D: acquiring analysis

Correct Answer: supply chain analysis ✔

Option A: learning

Option B: alternating

Option C: examining

Option D: deciding

Correct Answer: learning ✔

Option A: management factor

Option B: time factor

Option C: customer factor

Option D: chain factor

Correct Answer: time factor ✔

Option A: resourcing

Option B: value acquiring

Option C: production

Option D: value acquaintance

Correct Answer: production ✔

Option A: external accounting

Option B: internal accounting

Option C: business accounting

Option D: financial accounting

Correct Answer: financial accounting ✔

Option A: address management

Option B: issue management

Option C: strategic cost management

Option D: managerial cost

Correct Answer: strategic cost management ✔

Option A: resource research

Option B: market research

Option C: utilization

Option D: distribution

Correct Answer: distribution ✔

Option A: cost of ongoing operations

Option B: investments in physical assets

Option C: training of managers

Option D: all of above

Correct Answer: all of above ✔

Option A: cost accounting

Option B: decision accounting

Option C: financial accounting

Option D: management accounting

Correct Answer: financial accounting ✔

Option A: help management

Option B: cost management

Option C: past management

Option D: future management

Correct Answer: cost management ✔

Option A: internal audit

Option B: external audit

Option C: functional audit

Option D: treasury audit

Correct Answer: internal audit ✔

Option A: external parties

Option B: internal parties

Option C: environmental parties

Option D: transactional parties

Correct Answer: external parties ✔

Option A: quality

Option B: management chain

Option C: customer chain

Option D: cost chain

Correct Answer: quality ✔

Option A: technology management

Option B: people management

Option C: customer relationship management

Option D: resource management

Correct Answer: customer relationship management ✔

Option A: cost format

Option B: decided plan

Option C: coordination plan

Option D: budget

Correct Answer: budget ✔

Option A: organization

Option B: alternation

Option C: planning

Option D: valuing

Correct Answer: planning ✔

Option A: asset function

Option B: investment function

Option C: line function

Option D: staff function

Correct Answer: staff function ✔

Option A: value chain

Option B: useful chain

Option C: product chain

Option D: services chain

Correct Answer: value chain ✔

Option A: benefit approach

Option B: cost approach

Option C: cost-benefit approach

Option D: accounting approach

Correct Answer: benefit approach ✔

Option A: past orientation

Option B: help banks make decisions

Option C: help managers make decisions

Option D: help investors make decision

Correct Answer: help managers make decisions ✔

Option A: $1,775,000

Option B: $1,675,000

Option C: $1,875,000

Option D: $1,975,000

Correct Answer: $1,775,000 ✔

Option A: cost application base

Option B: sale application base

Option C: price application base

Option D: direct application base

Correct Answer: cost application base ✔

Option A: budget overhead applied

Option B: manufacturing overhead applied

Option C: labor overhead applied

Option D: none of above

Correct Answer: manufacturing overhead applied ✔

Option A: 69.72%

Option B: 79.72%

Option C: 99.75%

Option D: 89.72%

Correct Answer: 89.72% ✔

Option A: $168,750

Option B: $148,570

Option C: $186,750

Option D: $125,680

Correct Answer: $168,750 ✔

Option A: over allocated budget

Option B: under allocated budget

Option C: under allocated indirect cost

Option D: over allocated direct cost

Correct Answer: over allocated budget ✔

Option A: $803.571 per labor hour

Option B: $805 per labor hour

Option C: $905 per labor hour

Option D: $802 per labor hour

Correct Answer: $803.571 per labor hour ✔

Option A: $93,450

Option B: $94,560

Option C: $96,450

Option D: $95,450

Correct Answer: $95,450 ✔

Option A: sales allocation

Option B: cost tracing

Option C: cost allocation

Option D: sales tracing

Correct Answer: cost allocation ✔

Option A: 67.30%

Option B: 87.31%

Option C: 55.50%

Option D: 45.50%

Correct Answer: 87.31% ✔

Option A: 109.87

Option B: $107.78

Option C: $106.56

Option D: $104.34

Correct Answer: $107.78 ✔

Option A: priced costing

Option B: actual costing

Option C: direct costing

Option D: indirect costing

Correct Answer: actual costing ✔

Option A: under allocated indirect cost

Option B: over allocated direct cost

Option C: over allocated budget

Option D: under allocated budget

Correct Answer: under allocated indirect cost ✔

Option A: $78,000

Option B: −$78000

Option C: −$8000

Option D: $8,000

Correct Answer: −$8000 ✔

Option A: linked allocation base

Option B: direct allocation base

Option C: indirect allocation base

Option D: cost allocation base

Correct Answer: cost allocation base ✔

Option A: 112.34 per piece

Option B: 113.34 per piece

Option C: 111.34 per piece

Option D: 110.34 per piece

Correct Answer: 113.34 per piece ✔

Option A: manufacturing overhead allocated

Option B: cost overhead applied

Option C: manufacturing overhead applied

Option D: both A and C

Correct Answer: both A and C ✔

Option A: $138 per labor hour

Option B: $137.27 per hour

Option C: $140 per labor hour

Option D: $142 per labor hour

Correct Answer: $137.27 per hour ✔

Option A: $126.32 per labor hour

Option B: $128.32 per labor hour

Option C: $130 per labor hour

Option D: $132 per labor hour

Correct Answer: $126.32 per labor hour ✔

Option A: selling time record

Option B: labor time record

Option C: buying time record

Option D: direct time record

Correct Answer: labor time record ✔

Option A: $1500 per machine hour

Option B: $250 per machine hour

Option C: $500 per machine hour

Option D: $1000 per machine hour

Correct Answer: $500 per machine hour ✔

Option A: $4,730,000

Option B: $3,730,000

Option C: $2,730,000

Option D: $1,730,000

Correct Answer: $2,730,000 ✔

Option A: cost assignment

Option B: cost expectation

Option C: event assignment

Option D: probability assignment

Correct Answer: cost assignment ✔