Cost Accounting MCQs

Option A: quantitative analysis

Option B: decision method

Option C: qualitative method

Option D: linearity method

Correct Answer: decision method ✔

Option A: employee morale

Option B: cost of materials

Option C: cost of workers

Option D: cost of marketing

Correct Answer: employee morale ✔

Option A: dependent cost

Option B: independent cost

Option C: incremental cost

Option D: differential cost

Correct Answer: differential cost ✔

Option A: qualitative factors

Option B: quantitative factors

Option C: expected factors

Option D: recorded factors

Correct Answer: quantitative factors ✔

Option A: employee behavior at workplace

Option B: employee satisfaction

Option C: employee morale

Option D: cost of materials

Correct Answer: cost of materials ✔

Option A: demand or supply decisions

Option B: make or buy decisions

Option C: relevant or irrelevant decision

Option D: idle or busy decisions

Correct Answer: make or buy decisions ✔

Option A: linear predictions

Option B: dependent predictions

Option C: making predictions

Option D: independent predictions

Correct Answer: making predictions ✔

Option A: unrecorded costs

Option B: recorded costs

Option C: sunk costs

Option D: bunked costs

Correct Answer: sunk costs ✔

Option A: offshore cost

Option B: outsource cost

Option C: in-source cost

Option D: opportunity cost

Correct Answer: opportunity cost ✔

Option A: sunk factors

Option B: quantitative factors

Option C: qualitative factors

Option D: both B and C

Correct Answer: both B and C ✔

Option A: identify the problem

Option B: identify the linear variable

Option C: identify the certainty

Option D: identify the multiplier

Correct Answer: identify the problem ✔

Option A: expected cost

Option B: expected revenues

Option C: irrelevant costs

Option D: relevant costs

Correct Answer: relevant costs ✔

Option A: differential in-sourcing

Option B: off-shoring

Option C: incremental outsourcing

Option D: differential outsourcing

Correct Answer: off-shoring ✔

Option A: past costs

Option B: future costs

Option C: expected costs

Option D: sunk costs

Correct Answer: past costs ✔

Option A: net income irrelevancy

Option B: operating income maximization

Option C: operating income minimization

Option D: operating income relevancy

Correct Answer: operating income maximization ✔

Option A: value costs

Option B: future function costs

Option C: business function costs

Option D: sunk function costs

Correct Answer: business function costs ✔

Option A: idle sourcing

Option B: sunk sourcing

Option C: outsourcing

Option D: in-sourcing

Correct Answer: in-sourcing ✔

Option A: expected factors

Option B: recorded factors

Option C: qualitative factors

Option D: quantitative factors

Correct Answer: qualitative factors ✔

Option A: linear correlation

Option B: making decisions

Option C: implement decisions

Option D: evaluate performance

Correct Answer: making decisions ✔

Option A: salvages

Option B: relevant

Option C: irrelevant

Option D: depreciated cost

Correct Answer: relevant ✔

Option A: in-source cost

Option B: opportunity cost

Option C: offshore cost

Option D: outsource cost

Correct Answer: opportunity cost ✔

Option A: expected future costs

Option B: serial costs

Option C: parallel costs

Option D: abnormal costs

Correct Answer: expected future costs ✔

Option A: independent revenue

Option B: incremental revenue

Option C: differential revenue

Option D: dependent revenue

Correct Answer: differential revenue ✔

Option A: have high correlation

Option B: be in future

Option C: be in past

Option D: be zero correlated

Correct Answer: be in future ✔

Option A: quality of suppliers

Option B: dependability of suppliers

Option C: production irrelevancy

Option D: both a and b

Correct Answer: both a and b ✔

Option A: operating cost

Option B: sunk cost

Option C: in-house cost

Option D: out-house cost

Correct Answer: sunk cost ✔

Option A: fixed output

Option B: variable output

Option C: breakeven number of units

Option D: total number of units

Correct Answer: breakeven number of units ✔

Option A: $900

Option B: $1,200

Option C: $1,500

Option D: $1,600

Correct Answer: $1,500 ✔

Option A: $6,000

Option B: −$6000

Option C: $20,000

Option D: −$20000

Correct Answer: $6,000 ✔

Option A: 12%

Option B: 20%

Option C: 5%

Option D: 15%

Correct Answer: 20% ✔

Option A: $4,000

Option B: $8,000

Option C: $5,000

Option D: $3,000

Correct Answer: $8,000 ✔

Option A: $11,000

Option B: −$7000

Option C: $4,500

Option D: $7,000

Correct Answer: $7,000 ✔

Option A: $5,000

Option B: −$5000

Option C: $19,000

Option D: −$19000

Correct Answer: $5,000 ✔

Option A: $120,000

Option B: $75,000

Option C: $12,000

Option D: $175,000

Correct Answer: $75,000 ✔

Option A: per unit cost

Option B: variable cost

Option C: fixed cost

Option D: multiple cost

Correct Answer: variable cost ✔

Option A: revenue margin

Option B: variable margin

Option C: contribution margin

Option D: divisor margin

Correct Answer: contribution margin ✔

Option A: $80,000

Option B: $160,000

Option C: $16,000

Option D: $20,000

Correct Answer: $20,000 ✔

Option A: $9,650

Option B: $96,000

Option C: $15

Option D: $9,600

Correct Answer: $96,000 ✔

Option A: $16,000

Option B: $40,000

Option C: $25,000

Option D: $35,700

Correct Answer: $16,000 ✔

Option A: revenue margin

Option B: variable margin

Option C: contribution margin

Option D: divisor margin

Correct Answer: contribution margin ✔

Option A: $400

Option B: $600

Option C: $800

Option D: $1,000

Correct Answer: $400 ✔

Option A: 20%

Option B: 10%

Option C: 22%

Option D: 16%

Correct Answer: 20% ✔

Option A: $20 per unit

Option B: $30 per unit

Option C: $50 per unit

Option D: $40 per unit

Correct Answer: $30 per unit ✔

Option A: unit income

Option B: fixed income

Option C: operating income

Option D: marginal income

Correct Answer: operating income ✔

Option A: $3,000

Option B: $2,000

Option C: $1,000

Option D: zero

Correct Answer: zero ✔

Option A: $35,000

Option B: $28,000

Option C: $17,500

Option D: $82,000

Correct Answer: $28,000 ✔

Option A: breakeven point

Option B: cost point

Option C: revenue point

Option D: quantity point

Correct Answer: breakeven point ✔

Option A: $14,000

Option B: $25,700

Option C: $16,000

Option D: $25,000

Correct Answer: $14,000 ✔

Option A: $2,000

Option B: $5,250

Option C: $4,280

Option D: $3,860

Correct Answer: $2,000 ✔

Option A: unknown and variable

Option B: known and variable

Option C: unknown and constant

Option D: known and constant

Correct Answer: known and constant ✔

Option A: 60 units

Option B: 30 units

Option C: 50 units

Option D: 70 units

Correct Answer: 50 units ✔

Option A: 50 units

Option B: 60 units

Option C: 70 units

Option D: 65 units

Correct Answer: 50 units ✔

Option A: $200

Option B: $400

Option C: $600

Option D: $800

Correct Answer: $800 ✔

Option A: revenues

Option B: sold quantity

Option C: sold price

Option D: bulk price

Correct Answer: revenues ✔

Option A: fixed margin percentage

Option B: contribution margin percentage

Option C: variable margin percentage

Option D: breakeven margin percentage

Correct Answer: contribution margin percentage ✔

Option A: variable costs

Option B: costs of goods sold

Option C: number of units sold

Option D: all of above

Correct Answer: number of units sold ✔

Option A: $100,000

Option B: $150,000

Option C: $250,000

Option D: $225,000

Correct Answer: $250,000 ✔

Option A: percentage price

Option B: margin price

Option C: contribute price

Option D: selling price

Correct Answer: selling price ✔

Option A: breakeven revenue

Option B: total revenue

Option C: fixed revenue

Option D: variable revenue

Correct Answer: breakeven revenue ✔

Option A: selling margin percentage

Option B: cost margin percentage

Option C: discount percentage

Option D: contribution margin percentage

Correct Answer: contribution margin percentage ✔

Option A: 17%

Option B: 14%

Option C: 4%

Option D: 25%

Correct Answer: 4% ✔

Option A: contribution margin per unit

Option B: variable margin per unit

Option C: selling margin per unit

Option D: sale per unit

Correct Answer: contribution margin per unit ✔

Option A: $155,000

Option B: $125,000

Option C: $135,000

Option D: $145,000

Correct Answer: $125,000 ✔

Option A: $74,400

Option B: $7,440,000

Option C: $516.67

Option D: $51,667

Correct Answer: $516.67 ✔

Option A: $2,500

Option B: $4,000

Option C: $3,800

Option D: $3,800

Correct Answer: $4,000 ✔

Option A: $25,000

Option B: $14,000

Option C: $6,000

Option D: $8,400

Correct Answer: $14,000 ✔

Option A: $97,000

Option B: $83,000

Option C: $63,000

Option D: $12,860

Correct Answer: $63,000 ✔

Option A: revenue analysis

Option B: costs analysis

Option C: operating income analysis

Option D: cost volume profit analysis

Correct Answer: cost volume profit analysis ✔

Option A: $13,500

Option B: $14,280

Option C: $18,500

Option D: $17,500

Correct Answer: $17,500 ✔

Option A: off shore cost

Option B: markup

Option C: sunk cost

Option D: outsource cost

Correct Answer: markup ✔

Option A: market based approach

Option B: cost incurrence pricing

Option C: cost plus pricing

Option D: locked-in cost pricing

Correct Answer: cost plus pricing ✔

Option A: outsource engineering

Option B: reverse engineering

Option C: target engineering

Option D: off shore engineering

Correct Answer: reverse engineering ✔

Option A: peak-load pricing

Option B: elastic pricing

Option C: elastic demand

Option D: inelastic demand

Correct Answer: peak-load pricing ✔

Option A: reverse engineering

Option B: value engineering

Option C: target engineering

Option D: operation engineering

Correct Answer: value engineering ✔

Option A: target operating income per unit

Option B: target cost per unit

Option C: total current full cost

Option D: total cost per unit

Correct Answer: target operating income per unit ✔

Option A: designed-in costs

Option B: locked-in costs

Option C: value added cost

Option D: non-value added cost

Correct Answer: value added cost ✔

Option A: cost incurrence

Option B: valued incurrence

Option C: locked incurrence

Option D: non valued incurrence

Correct Answer: cost incurrence ✔

Option A: demand elasticity

Option B: price elasticity

Option C: price inelasticity

Option D: demand inelasticity

Correct Answer: demand inelasticity ✔

Option A: target price

Option B: target cost

Option C: outsource price

Option D: off shore price

Correct Answer: target price ✔

Option A: designed-in costs

Option B: locked-in costs

Option C: value added cost

Option D: both a and b

Correct Answer: designed-in costs ✔

Option A: designed-in costs

Option B: locked-in costs

Option C: value added cost

Option D: non-value added cost

Correct Answer: value added cost ✔

Option A: price incurrence

Option B: price discrimination

Option C: price targeting

Option D: price engineering

Correct Answer: price discrimination ✔

Option A: product life cycle

Option B: life cycle budgeting

Option C: life cycle costing

Option D: target costing

Correct Answer: life cycle costing ✔

Option A: $15

Option B: $12

Option C: $16

Option D: $18

Correct Answer: $12 ✔

Option A: budgeted life cycle

Option B: targeted life cycle

Option C: customer life cycle

Option D: operating life cycle

Correct Answer: customer life cycle ✔

Option A: product life cycle method

Option B: life cycle budgeting method

Option C: life cycle costing method

Option D: time and material method

Correct Answer: time and material method ✔

Option A: product life cycle

Option B: life cycle budgeting

Option C: life cycle costing

Option D: target costing

Correct Answer: product life cycle ✔

Option A: $27,000

Option B: $26,000

Option C: $24,000

Option D: $25,000

Correct Answer: $24,000 ✔

Option A: customers

Option B: costs

Option C: competitors

Option D: all of above

Correct Answer: customers ✔

Option A: product life cycle

Option B: life cycle budgeting

Option C: life cycle costing

Option D: target costing

Correct Answer: life cycle budgeting ✔

Option A: independent revenue approach

Option B: market based approach

Option C: cost based approach

Option D: dependent revenue approach

Correct Answer: cost based approach ✔

Option A: market based

Option B: sunk cost

Option C: cost based

Option D: both a and c

Correct Answer: both a and c ✔

Option A: independent revenue approach

Option B: market based approach

Option C: dependent revenue approach

Option D: cost based approach

Correct Answer: market based approach ✔

Option A: target pricing

Option B: target costing

Option C: value engineering

Option D: all of above

Correct Answer: all of above ✔

Option A: total current full cost

Option B: total cost per unit

Option C: target operating income per unit

Option D: target cost per unit

Correct Answer: target cost per unit ✔

Option A: target operating income per unit

Option B: target cost per unit

Option C: total current full cost

Option D: total cost per unit

Correct Answer: target cost per unit ✔

Option A: 388.5

Option B: 350

Option C: 362

Option D: 368.5

Correct Answer: 388.5 ✔

Option A: target rate of return on investment

Option B: operating income per unit

Option C: operating cost per unit

Option D: cost of goods sold

Correct Answer: target rate of return on investment ✔

Option A: non homogeneous relationship

Option B: homogeneous relationship

Option C: an internal relationship

Option D: an extreme relationship

Correct Answer: non homogeneous relationship ✔

Option A: low high method

Option B: constant equation

Option C: variable equation

Option D: high low method

Correct Answer: high low method ✔