Cost Accounting MCQs

Option A: margin of safety

Option B: margin of profit

Option C: margin of loss

Option D: margin of income

Correct Answer: margin of safety ✔

Option A: $35,000

Option B: $13,000

Option C: $5,000

Option D: $10,000

Correct Answer: $5,000 ✔

Option A: 100 units

Option B: 900 units

Option C: 400 units

Option D: 500 units

Correct Answer: 900 units ✔

Option A: initial offering cost

Option B: batch marketing cost

Option C: product marketing cost

Option D: product design cost

Correct Answer: product design cost ✔

Option A: cost variance is favorable

Option B: cost variance is unfavorable

Option C: price variance is favorable

Option D: price variance is unfavorable

Correct Answer: price variance is favorable ✔

Option A: $30,000

Option B: $100,000

Option C: $200,000

Option D: $30,000

Correct Answer: $30,000 ✔

Option A: price requirements

Option B: supply requirements

Option C: budgeted performance

Option D: demand requirements

Correct Answer: budgeted performance ✔

Option A: less than zero

Option B: equal to zero

Option C: favorable

Option D: unfavorable

Correct Answer: favorable ✔

Option A: focused performance

Option B: merchandise performance

Option C: distribution performance

Option D: expected performance

Correct Answer: expected performance ✔

Option A: $409,000

Option B: $109,000

Option C: $209,000

Option D: $309,000

Correct Answer: $109,000 ✔

Option A: favorable variance

Option B: adverse variance

Option C: adverse standard deviation

Option D: unfavorable variance

Correct Answer: adverse variance ✔

Option A: $20

Option B: $120

Option C: $40

Option D: $60

Correct Answer: $120 ✔

Option A: $80,000

Option B: $71,000

Option C: $61,000

Option D: $31,000

Correct Answer: $31,000 ✔

Option A: direct variance

Option B: rate variance

Option C: labor variance

Option D: manufacturing variance

Correct Answer: rate variance ✔

Option A: $400,000

Option B: $500,000

Option C: $100,000

Option D: $600,000

Correct Answer: $100,000 ✔

Option A: $75,000

Option B: $25,000

Option C: $35,000

Option D: $45,000

Correct Answer: $25,000 ✔

Option A: correspondent budget

Option B: full budget variance

Option C: methodology variance

Option D: static budget variance

Correct Answer: static budget variance ✔

Option A: actual quantity manufactured

Option B: budgeted quantity manufactures

Option C: budgeted quantity sold

Option D: budgeted input quantity

Correct Answer: budgeted input quantity ✔

Option A: flexible budget cost

Option B: flexible investment cost

Option C: static budget cost

Option D: static variable cost

Correct Answer: flexible budget cost ✔

Option A: efficiency

Option B: effectiveness

Option C: growth evaluation

Option D: performance evaluation

Correct Answer: efficiency ✔

Option A: functioning

Option B: variance

Option C: variation

Option D: deviation

Correct Answer: variance ✔

Option A: static budget receipts

Option B: static budget deviation

Option C: static budget variance

Option D: multiple budget variance

Correct Answer: static budget variance ✔

Option A: $23,800

Option B: $11,200

Option C: $12,200

Option D: $13,200

Correct Answer: $11,200 ✔

Option A: control variance

Option B: uncontrolled variance

Option C: usage variance

Option D: effective variance

Correct Answer: usage variance ✔

Option A: understand variance reason

Option B: improve future performance

Option C: learning of improvement

Option D: all of above

Correct Answer: all of above ✔

Option A: $135,000

Option B: $45,000

Option C: $50,000

Option D: $55,000

Correct Answer: $55,000 ✔

Option A: price variance is favorable

Option B: price variance is unfavorable

Option C: cost variance is favorable

Option D: cost variance is unfavorable

Correct Answer: price variance is favorable ✔

Option A: marketing budget

Option B: methodological budget

Option C: static budget

Option D: varied budget

Correct Answer: static budget ✔

Option A: positive

Option B: negative

Option C: zero

Option D: one

Correct Answer: positive ✔

Option A: 300 units

Option B: 700 units

Option C: 800 units

Option D: 500 units

Correct Answer: 300 units ✔

Option A: price variance

Option B: actual output price

Option C: budgeted output price

Option D: actual selling price

Correct Answer: price variance ✔

Option A: activity based costing

Option B: improved costing

Option C: learned improvements

Option D: positive effectiveness

Correct Answer: activity based costing ✔

Option A: revenue planning

Option B: actual results

Option C: marketing results

Option D: cost planning

Correct Answer: actual results ✔

Option A: $100

Option B: $20

Option C: $80

Option D: $60

Correct Answer: $80 ✔

Option A: output unit

Option B: input unit

Option C: standard input

Option D: standard output

Correct Answer: standard input ✔

Option A: growth evaluation

Option B: performance evaluation

Option C: efficiency

Option D: effectiveness

Correct Answer: effectiveness ✔

Option A: 275 units

Option B: 250 units

Option C: 150 units

Option D: 650 units

Correct Answer: 150 units ✔

Option A: $40,000

Option B: $50,000

Option C: $150,000

Option D: $170,000

Correct Answer: $40,000 ✔

Option A: revenue variance

Option B: cost variance

Option C: favorable variance

Option D: unfavorable variance

Correct Answer: favorable variance ✔

Option A: standard price per input unit

Option B: standard price per output unit

Option C: standard cost per input unit

Option D: standard cost per output unit

Correct Answer: standard price per input unit ✔

Option A: $130

Option B: $70

Option C: $150

Option D: $80

Correct Answer: $70 ✔

Option A: $15,000

Option B: $13,000

Option C: $11,000

Option D: $9,000

Correct Answer: $15,000 ✔

Option A: 600 units

Option B: 200 units

Option C: 400 units

Option D: 500 units

Correct Answer: 200 units ✔

Option A: $36,000

Option B: $60,000

Option C: $26,000

Option D: $50,000

Correct Answer: $50,000 ✔

Option A: favorable variance

Option B: unfavorable variance

Option C: revenue variance

Option D: cost variance

Correct Answer: favorable variance ✔

Option A: standard price

Option B: input price

Option C: actual input

Option D: output price

Correct Answer: standard price ✔

Option A: fixed manufacturing cost

Option B: batch level cost

Option C: per unit cost

Option D: factory overall cost

Correct Answer: batch level cost ✔

Option A: actual result

Option B: expected results

Option C: expected cost

Option D: expected revenue

Correct Answer: actual result ✔

Option A: −$110

Option B: −$50

Option C: $110

Option D: $50

Correct Answer: $110 ✔

Option A: $90

Option B: $50

Option C: −$50

Option D: $100

Correct Answer: $90 ✔

Option A: 250 units

Option B: 450 units

Option C: 550 units

Option D: 650 units

Correct Answer: 450 units ✔

Option A: lesser effective

Option B: greater efficiency

Option C: smaller efficiency

Option D: greater effective

Correct Answer: greater efficiency ✔

Option A: static budget

Option B: varied budget

Option C: marketing budget

Option D: methodological budget

Correct Answer: static budget ✔

Option A: $4,000

Option B: $6,000

Option C: $8,000

Option D: $10,000

Correct Answer: $10,000 ✔

Option A: $120

Option B: $50

Option C: $110

Option D: $30

Correct Answer: $30 ✔

Option A: positive cost variance

Option B: negative cost variance

Option C: flexible budget variance

Option D: flexible cost variance

Correct Answer: flexible budget variance ✔

Option A: $4,500

Option B: $3,500

Option C: $2,500

Option D: $1,500

Correct Answer: $4,500 ✔

Option A: efficiency deviation

Option B: efficiency variance

Option C: budgeted variance

Option D: usage variance

Correct Answer: efficiency variance ✔

Option A: actual input quantity

Option B: actual output quantity

Option C: actual input price

Option D: actual output price

Correct Answer: actual input quantity ✔

Option A: 275 units

Option B: 125 units

Option C: 550 units

Option D: 650 units

Correct Answer: 550 units ✔

Option A: variable growth of company

Option B: constant growth of company

Option C: company is inefficient

Option D: company is efficient

Correct Answer: company is inefficient ✔

Option A: cost is unfavorable

Option B: variance is unfavorable

Option C: variance is favorable

Option D: cost is favorable

Correct Answer: variance is unfavorable ✔

Option A: revenue allocation

Option B: revenue object

Option C: revenue increment

Option D: reciprocal revenue

Correct Answer: revenue allocation ✔

Option A: direct method

Option B: step down

Option C: reciprocal method

Option D: all of above

Correct Answer: all of above ✔

Option A: First incremental user

Option B: primary user

Option C: secondary user

Option D: second incremental user

Correct Answer: First incremental user ✔

Option A: indirect method

Option B: direct method

Option C: step down method

Option D: reciprocal method

Correct Answer: step down method ✔

Option A: indirect method

Option B: direct method

Option C: step down method

Option D: reciprocal method

Correct Answer: reciprocal method ✔

Option A: Third incremental party

Option B: second incremental party

Option C: primary party

Option D: First incremental party

Correct Answer: primary party ✔

Option A: $90 per hour

Option B: less than $90 per hour

Option C: greater than $90 per hour

Option D: none of above

Correct Answer: $90 per hour ✔

Option A: sales mix allocation method

Option B: dual-rate cost-allocation method

Option C: single rate cost allocation method

Option D: quantity variance allocation method

Correct Answer: single rate cost allocation method ✔

Option A: revenue allocation

Option B: revenue object

Option C: revenue increment

Option D: reciprocal revenue

Correct Answer: revenue object ✔

Option A: step down allocation method

Option B: stand-alone revenue allocation method

Option C: incremental revenue allocation method

Option D: revenue mix allocation method

Correct Answer: stand-alone revenue allocation method ✔

Option A: primary product

Option B: First incremental product

Option C: Second incremental product

Option D: Third incremental product

Correct Answer: Third incremental product ✔

Option A: First incremental user

Option B: primary user

Option C: secondary user

Option D: second incremental user

Correct Answer: primary user ✔

Option A: First incremental user

Option B: primary user

Option C: secondary user

Option D: second incremental user

Correct Answer: second incremental user ✔

Option A: primary product

Option B: First incremental product

Option C: Second incremental product

Option D: Third incremental product

Correct Answer: primary product ✔

Option A: sales mix allocation method

Option B: dual-rate cost-allocation method

Option C: single rate cost allocation method

Option D: quantity variance allocation method

Correct Answer: dual-rate cost-allocation method ✔

Option A: selling prices as weights

Option B: unit costs as weights

Option C: physical units as weights

Option D: all of above

Correct Answer: all of above ✔

Option A: complete reciprocal costs

Option B: artificial costs

Option C: operating costs

Option D: flexible operating costs

Correct Answer: complete reciprocal costs ✔

Option A: bundled cost

Option B: common cost

Option C: stand-alone cost

Option D: incremental cost

Correct Answer: common cost ✔

Option A: revenue increment

Option B: reciprocal revenue

Option C: revenue allocation

Option D: revenue object

Correct Answer: revenue object ✔

Option A: bundled products allocation method

Option B: variable cost allocation method

Option C: stand-alone cost allocation method

Option D: incremental cost allocation method

Correct Answer: incremental cost allocation method ✔

Option A: bundled products allocation method

Option B: variable cost allocation method

Option C: stand-alone cost allocation method

Option D: incremental cost allocation method

Correct Answer: stand-alone cost allocation method ✔

Option A: $2,078,000

Option B: $3,078,000

Option C: $2,065,000

Option D: $3,065,000

Correct Answer: $2,065,000 ✔

Option A: indirect method

Option B: direct method

Option C: step down method

Option D: reciprocal method

Correct Answer: direct method ✔

Option A: primary product

Option B: First incremental product

Option C: Second incremental product

Option D: Third incremental product

Correct Answer: First incremental product ✔

Option A: sales mix allocation method

Option B: dual-rate cost-allocation method

Option C: single rate cost allocation method

Option D: both b and c

Correct Answer: both b and c ✔

Option A: step down product

Option B: dual mix product

Option C: bundled product

Option D: reciprocal product

Correct Answer: bundled product ✔

Option A: step down allocation method

Option B: stand-alone revenue allocation method

Option C: incremental revenue allocation method

Option D: revenue mix allocation method

Correct Answer: incremental revenue allocation method ✔

Option A: production department

Option B: operating department

Option C: allocation base department

Option D: both a and b

Correct Answer: both a and b ✔

Option A: supply department

Option B: support department

Option C: production department

Option D: allocation base department

Correct Answer: support department ✔

Option A: relevant

Option B: bunk

Option C: dispose value

Option D: sunk

Correct Answer: relevant ✔

Option A: outsourcing

Option B: insourcing

Option C: idle sourcing

Option D: sunk sourcing

Correct Answer: outsourcing ✔

Option A: parallel revenues

Option B: abnormal revenues

Option C: expected future revenues

Option D: serial revenues

Correct Answer: expected future revenues ✔

Option A: sunk costs

Option B: bunked costs

Option C: unrecorded costs

Option D: recorded costs

Correct Answer: sunk costs ✔

Option A: incremental cost

Option B: differential cost

Option C: dependent cost

Option D: independent cost

Correct Answer: incremental cost ✔

Option A: multi-collinearity information

Option B: quantitative information

Option C: qualitative analysis

Option D: obtaining information

Correct Answer: obtaining information ✔

Option A: qualitative factors

Option B: quantitative factors

Option C: expected factors

Option D: recorded factors

Correct Answer: quantitative factors ✔

Option A: irrelevant

Option B: depreciated cost

Option C: salvages

Option D: relevant

Correct Answer: relevant ✔

Option A: incremental decisions

Option B: outsource decisions

Option C: product mix decisions

Option D: in-source decisions

Correct Answer: product mix decisions ✔