Cost Accounting MCQs

Option A: fixed cost-variable budget amount

Option B: actual cost-flexible budget amount

Option C: variable cost-allocated amount

Option D: actual cost-variable amount

Correct Answer: actual cost-flexible budget amount ✔

Option A: $12,000

Option B: $15,000

Option C: $10,000

Option D: $32,000

Correct Answer: $32,000 ✔

Option A: lump sum price amount

Option B: lump sum fixed cost

Option C: lump sum variable cost

Option D: lump sum manufacturing cost

Correct Answer: lump sum fixed cost ✔

Option A: $59,000

Option B: $25,000

Option C: $15,000

Option D: $39,000

Correct Answer: $25,000 ✔

Option A: batch level

Option B: output unit level

Option C: facility and product sustaining

Option D: all of above

Correct Answer: all of above ✔

Option A: $61,500

Option B: $31,500

Option C: $41,500

Option D: $51,500

Correct Answer: $31,500 ✔

Option A: production numerator level

Option B: production denominator level

Option C: production cost level

Option D: production fixed level

Correct Answer: production denominator level ✔

Option A: $67,500

Option B: $57,500

Option C: $47,500

Option D: $37,500

Correct Answer: $37,500 ✔

Option A: flexible hours

Option B: actual cost

Option C: actual quantity

Option D: actual price

Correct Answer: actual quantity ✔

Option A: variable overhead spending variance

Option B: fixed overhead spending variance

Option C: constant spending variance

Option D: potential spending variance

Correct Answer: variable overhead spending variance ✔

Option A: $20,000

Option B: $76,000

Option C: $86,000

Option D: $96,000

Correct Answer: $20,000 ✔

Option A: variable setup costs

Option B: fixed setup costs

Option C: variable batch costs

Option D: fixed batch costs

Correct Answer: fixed setup costs ✔

Option A: $21,000

Option B: $11,000

Option C: $31,000

Option D: $41,000

Correct Answer: $41,000 ✔

Option A: effectively measure

Option B: lump sum measure

Option C: non-financial measures

Option D: financial measures

Correct Answer: non-financial measures ✔

Option A: $10,000

Option B: $1,000

Option C: $7,000

Option D: $4,000

Correct Answer: $10,000 ✔

Option A: $142,500

Option B: $112,500

Option C: $122,500

Option D: $132,500

Correct Answer: $112,500 ✔

Option A: $518,750

Option B: $418,750

Option C: $218,750

Option D: $318,750

Correct Answer: $218,750 ✔

Option A: $16,500

Option B: $15,500

Option C: $14,500

Option D: $13,500

Correct Answer: $13,500 ✔

Option A: setup cost

Option B: batch cost

Option C: facility cost

Option D: lump sum cost

Correct Answer: setup cost ✔

Option A: fixed setup cost

Option B: total setup cost

Option C: variable setup cost

Option D: total overhead cost

Correct Answer: fixed setup cost ✔

Option A: $218,750

Option B: $238,750

Option C: $258,750

Option D: $268,750

Correct Answer: $268,750 ✔

Option A: potential price response

Option B: potential cost response

Option C: potential budget response

Option D: potential management response

Correct Answer: potential management response ✔

Option A: potential cost response

Option B: potential budget response

Option C: potential management response

Option D: potential price response

Correct Answer: potential management response ✔

Option A: $39,000

Option B: $49,000

Option C: $59,000

Option D: $73,000

Correct Answer: $39,000 ✔

Option A: denominator level

Option B: numerator level

Option C: fixed level

Option D: variable level

Correct Answer: denominator level ✔

Option A: denominator level variance

Option B: numerator level variance

Option C: price level variance

Option D: cost level variance

Correct Answer: denominator level variance ✔

Option A: $43,000

Option B: $73,000

Option C: $63,000

Option D: $53,000

Correct Answer: $73,000 ✔

Option A: $97,000

Option B: $87,000

Option C: $27,000

Option D: $37,000

Correct Answer: $37,000 ✔

Option A: $27,000

Option B: $15,000

Option C: $39,000

Option D: $49,000

Correct Answer: $39,000 ✔

Option A: $144,000

Option B: $134,000

Option C: $124,000

Option D: $30,000

Correct Answer: $30,000 ✔

Option A: $40,000

Option B: $154,000

Option C: $164,000

Option D: $124,000

Correct Answer: $40,000 ✔

Option A: $61,000

Option B: $71,000

Option C: $43,000

Option D: $24,000

Correct Answer: $71,000 ✔

Option A: $27,000

Option B: $37,000

Option C: $97,000

Option D: $87,000

Correct Answer: $27,000 ✔

Option A: profit variance

Option B: investment variance

Option C: cost variance

Option D: selling price variance

Correct Answer: selling price variance ✔

Option A: corresponding variance

Option B: resultant variance

Option C: flexible budget variance

Option D: static budget variance

Correct Answer: flexible budget variance ✔

Option A: sales budget variance

Option B: cost budget variance

Option C: resultant budget variance

Option D: static budget variance

Correct Answer: sales budget variance ✔

Option A: static result

Option B: actual result

Option C: secondary result

Option D: primary result

Correct Answer: actual result ✔

Option A: $47,000

Option B: $57,000

Option C: $87,000

Option D: $97,000

Correct Answer: $87,000 ✔

Option A: unstated budget variance

Option B: flexible budget variance

Option C: constant budget variance

Option D: static budget variance

Correct Answer: flexible budget variance ✔

Option A: $67,000

Option B: $97,000

Option C: $57,000

Option D: $47,000

Correct Answer: $97,000 ✔

Option A: $39,000

Option B: $49,000

Option C: $13,000

Option D: $15,000

Correct Answer: $13,000 ✔

Option A: selling price variance

Option B: investment variance

Option C: profit variance

Option D: primary variance

Correct Answer: selling price variance ✔

Option A: $29,000

Option B: $11,000

Option C: $15,000

Option D: $10,000

Correct Answer: $11,000 ✔

Option A: $87,500

Option B: $97,500

Option C: $67,500

Option D: $57,500

Correct Answer: $87,500 ✔

Option A: $36,000

Option B: $46,000

Option C: $56,000

Option D: $14,000

Correct Answer: $14,000 ✔

Option A: $9,000

Option B: $8,000

Option C: $12,000

Option D: $21,000

Correct Answer: $9,000 ✔

Option A: $1,500,000

Option B: $2,500,000

Option C: $3,500,000

Option D: $4,500,000

Correct Answer: $1,500,000 ✔

Option A: $45,000

Option B: $55,000

Option C: $75,000

Option D: $65,000

Correct Answer: $75,000 ✔

Option A: $5,000,000

Option B: $3,000,000

Option C: $2,000,000

Option D: $1,000,000

Correct Answer: $3,000,000 ✔

Option A: flexible budget

Option B: fixed budget

Option C: variable budget

Option D: multiplied budget

Correct Answer: flexible budget ✔

Option A: multiple budget variable

Option B: fixed budget variable

Option C: flexible budget variable

Option D: constant budget

Correct Answer: flexible budget variable ✔

Option A: multiple budget variable

Option B: fixed budget variable

Option C: flexible budget variable

Option D: constant budget

Correct Answer: flexible budget variable ✔

Option A: $215,000

Option B: $315,000

Option C: $415,000

Option D: $515,000

Correct Answer: $215,000 ✔

Option A: sales revenue variance

Option B: cost profit variance

Option C: profit volume variance

Option D: sales volume variance

Correct Answer: sales volume variance ✔

Option A: margin

Option B: distribution

Option C: collection

Option D: outcome

Correct Answer: outcome ✔

Option A: $10,000

Option B: $20,000

Option C: $40,000

Option D: $60,000

Correct Answer: $60,000 ✔

Option A: 4500 units

Option B: 5500 units

Option C: 8500 units

Option D: 9500 units

Correct Answer: 5500 units ✔

Option A: 32 bundle

Option B: 22 bundle

Option C: 42 bundle

Option D: 38 bundle

Correct Answer: 22 bundle ✔

Option A: $12,000

Option B: $6,000

Option C: −$6000

Option D: −$12000

Correct Answer: $6,000 ✔

Option A: 32.75%

Option B: 43.75%

Option C: 53%

Option D: 22%

Correct Answer: 43.75% ✔

Option A: degree of operating leverage

Option B: degree of change

Option C: degree of change in margin

Option D: degree of change in income

Correct Answer: degree of operating leverage ✔

Option A: PV graph

Option B: CV graph

Option C: SO graph

Option D: QI graph

Correct Answer: PV graph ✔

Option A: 6%

Option B: 3%

Option C: 9%

Option D: 12%

Correct Answer: 3% ✔

Option A: $113,043.48

Option B: $1,200,000

Option C: $130,000

Option D: $140,000

Correct Answer: $113,043.48 ✔

Option A: −$85000

Option B: −$35000

Option C: $85,000

Option D: $35,000

Correct Answer: $35,000 ✔

Option A: 8

Option B: 7

Option C: 6

Option D: 5

Correct Answer: 6 ✔

Option A: 52 bundles

Option B: 48 bundles

Option C: 45 bundles

Option D: 30 bundles

Correct Answer: 30 bundles ✔

Option A: 55.56%

Option B: 25.50%

Option C: 28%

Option D: 45.00%

Correct Answer: 55.56% ✔

Option A: revenue – all variable cost

Option B: revenue + all variable cost

Option C: cost + revenue

Option D: revenue – breakeven units

Correct Answer: A. revenue – all variable cost ✔

Option A: $1,000

Option B: −$1000

Option C: $17,000

Option D: −$17000

Correct Answer: $17,000 ✔

Option A: events

Option B: distribution

Option C: outcome

Option D: actions

Correct Answer: events ✔

Option A: $12,000

Option B: $14,000

Option C: $15,000

Option D: $16,000

Correct Answer: $15,000 ✔

Option A: 55 units

Option B: 45 units

Option C: 35 units

Option D: 25 units

Correct Answer: 25 units ✔

Option A: $10,000

Option B: $12,000

Option C: $16,000

Option D: $14,000

Correct Answer: $16,000 ✔

Option A: $23,000

Option B: −$23000

Option C: −$9000

Option D: $9,000

Correct Answer: $9,000 ✔

Option A: contribution

Option B: certainty

Option C: uncertainty

Option D: margin

Correct Answer: certainty ✔

Option A: expected value

Option B: expected decision value

Option C: expected outcome value

Option D: expected monetary value

Correct Answer: expected monetary value ✔

Option A: sales mix

Option B: product mix

Option C: unit mix

Option D: quantity mix

Correct Answer: sales mix ✔

Option A: sales margin

Option B: cost margin

Option C: Gross margin

Option D: income margin

Correct Answer: Gross margin ✔

Option A: 10%

Option B: 15%

Option C: 25%

Option D: 35%

Correct Answer: 25% ✔

Option A: 23.08%

Option B: 24.08%

Option C: 25.08%

Option D: 26.08%

Correct Answer: 23.08% ✔

Option A: −$17000

Option B: $17,000

Option C: $5,000

Option D: −$5000

Correct Answer: $5,000 ✔

Option A: breakeven costs

Option B: breakeven revenues

Option C: breakeven units

Option D: breakeven sales

Correct Answer: breakeven revenues ✔

Option A: target net cost

Option B: target net income

Option C: target net gain

Option D: target net loss

Correct Answer: target net income ✔

Option A: uncertain margin

Option B: certain margin

Option C: operating margin

Option D: operating leverage

Correct Answer: operating leverage ✔

Option A: 62

Option B: 38

Option C: 48

Option D: 58

Correct Answer: 38 ✔

Option A: event table

Option B: outcome table

Option C: decision table

Option D: probability table

Correct Answer: decision table ✔

Option A: 4.84

Option B: 2.84

Option C: 3.84

Option D: 5.84

Correct Answer: 2.84 ✔

Option A: −$8000

Option B: $3,000

Option C: −$3000

Option D: $8,000

Correct Answer: $3,000 ✔

Option A: revenues

Option B: selling price

Option C: unit price

Option D: bundle price

Correct Answer: revenues ✔

Option A: quantity of units required to sold

Option B: selling of units

Option C: sold units

Option D: contributed units

Correct Answer: quantity of units required to sold ✔

Option A: cost margin

Option B: fixed margin

Option C: revenue margin

Option D: contribution margin

Correct Answer: contribution margin ✔

Option A: mutual distribution

Option B: probability distribution

Option C: collective distribution

Option D: marginal distribution

Correct Answer: probability distribution ✔

Option A: Gross margin

Option B: income margin

Option C: sales margin

Option D: cost margin

Correct Answer: Gross margin ✔

Option A: $13,000

Option B: −$13000

Option C: $3,000

Option D: −$3000

Correct Answer: $13,000 ✔

Option A: 45 units

Option B: 30 units

Option C: 20 units

Option D: 52 units

Correct Answer: 20 units ✔

Option A: $32

Option B: $30

Option C: $25

Option D: $26.31

Correct Answer: $30 ✔

Option A: 33.34%

Option B: 43.34%

Option C: 23%

Option D: 25%

Correct Answer: 33.34% ✔

Option A: income margin percentage

Option B: Gross margin percentage

Option C: cost margin percentage

Option D: sales margin percentage

Correct Answer: Gross margin percentage ✔

Option A: revenues

Option B: operating leverage

Option C: contribution margin

Option D: operating margin

Correct Answer: revenues ✔