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MCQOPTIONS
This section includes 1375 Mcqs, each offering curated multiple-choice questions to sharpen your Commerce knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
Budget plan in many companies is also referred as |
| A. | rofit plan |
| B. | ales plan |
| C. | ost plan |
| D. | arketing plan |
| Answer» B. ales plan | |
| 52. |
Quantitative expression, of action plan by management of firm for a specified period of time is classified as |
| A. | omplexity |
| B. | rocess |
| C. | udget |
| D. | atching |
| Answer» D. atching | |
| 53. |
Financial statements and budget plans of some companies are also called |
| A. | ost statement |
| B. | reformed statement |
| C. | ales statement |
| D. | arket statement |
| Answer» C. ales statement | |
| 54. |
Higher and accurate budgeted profit forecast of managers lead to |
| A. | igh incentive bonus |
| B. | ow incentive bonus |
| C. | nfluence bonus |
| D. | evenue bonus |
| Answer» B. ow incentive bonus | |
| 55. |
Budget, which predicts effect of given level of operations on a cash position is classified as |
| A. | arket budget |
| B. | rice schedule |
| C. | lanned schedule |
| D. | ash budget |
| Answer» E. | |
| 56. |
Budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to |
| A. | udget production |
| B. | lanned production |
| C. | etup production |
| D. | tand by production |
| Answer» B. lanned production | |
| 57. |
If budget sales units are 5000, ending inventory is 4000 units and beginning inventory is 1000, then budget production will be |
| A. | 000 units |
| B. | 000 units |
| C. | 000 units |
| D. | 0000 units |
| Answer» D. 0000 units | |
| 58. |
Method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as |
| A. | tep down allocation method |
| B. | tand-alone revenue allocation method |
| C. | ncremental revenue allocation method |
| D. | evenue mix allocation method |
| Answer» D. evenue mix allocation method | |
| 59. |
According to incremental method, party which receives highest ranking in allocation of common cost is classified as |
| A. | hird incremental party |
| B. | econd incremental party |
| C. | rimary party |
| D. | irst incremental party |
| Answer» D. irst incremental party | |
| 60. |
Department which directly adds value to product or service is known as |
| A. | roduction department |
| B. | perating department |
| C. | llocation base department |
| D. | oth a and b |
| Answer» E. | |
| 61. |
Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour and work for 9500 actual hours at $110 per hour, then total cost would be |
| A. | 2,078,000 |
| B. | 3,078,000 |
| C. | 2,065,000 |
| D. | 3,065,000 |
| Answer» D. 3,065,000 | |
| 62. |
Process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as |
| A. | evenue allocation |
| B. | evenue object |
| C. | evenue increment |
| D. | eciprocal revenue |
| Answer» B. evenue object | |
| 63. |
Method which allocates cost of support department to only operating departments is called |
| A. | ndirect method |
| B. | irect method |
| C. | tep down method |
| D. | eciprocal method |
| Answer» C. tep down method | |
| 64. |
In incremental cost allocation method, cost object user who is ranked second in ranking order is known as |
| A. | irst incremental user |
| B. | rimary user |
| C. | econdary user |
| D. | econd incremental user |
| Answer» B. rimary user | |
| 65. |
Approaches to allocate costs of support department do not include |
| A. | ales mix allocation method |
| B. | ual-rate cost-allocation method |
| C. | ingle rate cost allocation method |
| D. | oth b and c |
| Answer» E. | |
| 66. |
Method, which allocates cost of support department to operating and support departments is known as |
| A. | ndirect method |
| B. | irect method |
| C. | tep down method |
| D. | eciprocal method |
| Answer» D. eciprocal method | |
| 67. |
Third ranked product in incremental revenue-allocation method is known as |
| A. | rimary product |
| B. | irst incremental product |
| C. | econd incremental product |
| D. | hird incremental product |
| Answer» E. | |
| 68. |
Costs, which consist of interdepartmental cost allocations plus cost of support department are classified as |
| A. | omplete reciprocal costs |
| B. | rtificial costs |
| C. | perating costs |
| D. | lexible operating costs |
| Answer» B. rtificial costs | |
| 69. |
cost object user, who is ranked first in incremental cost allocation method is known as |
| A. | irst incremental user |
| B. | rimary user |
| C. | econdary user |
| D. | econd incremental user |
| Answer» C. econdary user | |
| 70. |
Support department cost allocation method which makes no difference between variable and fixed costs is classified as |
| A. | ales mix allocation method |
| B. | ual-rate cost-allocation method |
| C. | ingle rate cost allocation method |
| D. | uantity variance allocation method |
| Answer» D. uantity variance allocation method | |
| 71. |
A particular term for which specific revenue measurement is required is known as |
| A. | evenue allocation |
| B. | evenue object |
| C. | evenue increment |
| D. | eciprocal revenue |
| Answer» C. evenue increment | |
| 72. |
Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as |
| A. | ales mix allocation method |
| B. | ual-rate cost-allocation method |
| C. | ingle rate cost allocation method |
| D. | uantity variance allocation method |
| Answer» C. ingle rate cost allocation method | |
| 73. |
Focus on budget cost of all activities necessary to sell and produce market offerings is known as |
| A. | ost based budgeting |
| B. | ctivity based budgeting |
| C. | roduction based budgeting |
| D. | aw material budgeting |
| Answer» C. roduction based budgeting | |
| 74. |
Plan of action; how an organization meets its opportunities and capabilities is classified as |
| A. | ction plan |
| B. | trategy |
| C. | tep wise plan |
| D. | omplex plan |
| Answer» C. tep wise plan | |
| 75. |
Type of budget, which is always available for specified period of future is called |
| A. | eriod budget |
| B. | atch budget |
| C. | iscontinued budget |
| D. | ontinuous budget |
| Answer» E. | |
| 76. |
Document, which contains information about used material sequence, detail and quantity of raw material is classified as |
| A. | ill of materials |
| B. | ill of sequence |
| C. | ill of detail |
| D. | ill of raw materials |
| Answer» B. ill of sequence | |
| 77. |
In activity based costing system, description of activity can be classified as |
| A. | ctivity list |
| B. | ctivity dictionary |
| C. | ctive purpose |
| D. | oth a and b |
| Answer» E. | |
| 78. |
Product which requires low amount of resources, but incur high per unit cost is classified as |
| A. | xpected under cost |
| B. | xpected over cost |
| C. | roduct under costing |
| D. | roduct over costing |
| Answer» E. | |
| 79. |
Costs of all activities for a group of products, rather than individual product can be classified as |
| A. | ctivity level costs |
| B. | nput level costs |
| C. | atch level costs |
| D. | utput level costs |
| Answer» D. utput level costs | |
| 80. |
Broad's average use to assign cost of revenue to cost objects will be classified as |
| A. | efined costing system |
| B. | efined selling system |
| C. | ndefined costing |
| D. | efined selling system |
| Answer» B. efined selling system | |
| 81. |
Type of costs that cannot be traced for individual products but help in supporting an organization are classified as |
| A. | ndividual sustaining costs |
| B. | acility sustaining costs |
| C. | ustained tracing |
| D. | upport tracing |
| Answer» C. ustained tracing | |
| 82. |
Costing system, in which individual activities are identified as cost object is considered as |
| A. | anufactured costing |
| B. | ctivity based costing |
| C. | llocation costing |
| D. | ase costing |
| Answer» C. llocation costing | |
| 83. |
In activity based costing method implementation, indirect costs are allocated by using the |
| A. | o cost pool |
| B. | ne or two cost pools |
| C. | ustained tracing |
| D. | upport tracing |
| Answer» C. ustained tracing | |
| 84. |
Cost pool category, which have similar cause and effect relationship, with each cost driver uses as an allocation base is classified as |
| A. | eterogeneous price pool |
| B. | omogenous cost pool |
| C. | eterogeneous cost pool |
| D. | omogenous price pool |
| Answer» C. eterogeneous cost pool | |
| 85. |
Costs of all activities for individual products or services can be called |
| A. | urpose level costs |
| B. | utput-unit level costs |
| C. | nput-unit level costs |
| D. | ctivity level costs |
| Answer» C. nput-unit level costs | |
| 86. |
In an activity based cost system; an activity/unit of work or task with differentiated purposes will be classified as |
| A. | ifferent task |
| B. | urpose cost |
| C. | n activity |
| D. | n allocation cost |
| Answer» D. n allocation cost | |
| 87. |
Budgeted total cost in indirect cost pool is divided by budgeted total quantity of cost allocation base is to calculate by |
| A. | udgeted direct cost rate |
| B. | udgeted indirect cost rate |
| C. | xpected indirect cost rate |
| D. | irect budget percentage |
| Answer» C. xpected indirect cost rate | |
| 88. |
An approach in which company under-costs it's one product and over-costs at least one product is classified as |
| A. | ervice-cost across subsidizing |
| B. | roduct-price cross subsidizing |
| C. | roduct-cost cross subsidizing |
| D. | roduct cross subsidizing |
| Answer» D. roduct cross subsidizing | |
| 89. |
If number of units are 3000 and per unit price is $500, then flexible budget variable will be |
| A. | 1,500,000 |
| B. | 2,500,000 |
| C. | 3,500,000 |
| D. | 4,500,000 |
| Answer» B. 2,500,000 | |
| 90. |
If an actual selling price is $400, an actual result is $250 and an actual units sold are 500, then selling price variance will be |
| A. | 45,000 |
| B. | 55,000 |
| C. | 75,000 |
| D. | 65,000 |
| Answer» D. 65,000 | |
| 91. |
Difference between flexible budget amount and corresponding static budget amount is classified as |
| A. | ales revenue variance |
| B. | ost profit variance |
| C. | rofit volume variance |
| D. | ales volume variance |
| Answer» E. | |
| 92. |
If flexible budget amount is $82000 and actual result is $45000 then flexible budget amount will be |
| A. | 97,000 |
| B. | 87,000 |
| C. | 27,000 |
| D. | 37,000 |
| Answer» E. | |
| 93. |
If sales budget variance is $57000 and flexible budget amount is $97000, then static budget amount will be |
| A. | 40,000 |
| B. | 154,000 |
| C. | 164,000 |
| D. | 124,000 |
| Answer» B. 154,000 | |
| 94. |
Static budget amount is subtracted from flexible budget amount to calculate the |
| A. | ales budget variance |
| B. | ost budget variance |
| C. | esultant budget variance |
| D. | tatic budget variance |
| Answer» B. ost budget variance | |
| 95. |
Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be |
| A. | 61,000 |
| B. | 71,000 |
| C. | 43,000 |
| D. | 24,000 |
| Answer» C. 43,000 | |
| 96. |
Flexible budget amount is added to flexible budget variance to calculate |
| A. | tatic result |
| B. | ctual result |
| C. | econdary result |
| D. | rimary result |
| Answer» C. econdary result | |
| 97. |
If flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be |
| A. | 27,000 |
| B. | 15,000 |
| C. | 39,000 |
| D. | 49,000 |
| Answer» D. 49,000 | |
| 98. |
Budget which calculates expected revenues and expected costs, based on actual output quantity is named as |
| A. | lexible budget |
| B. | ixed budget |
| C. | ariable budget |
| D. | ultiplied budget |
| Answer» B. ixed budget | |
| 99. |
Number of units are multiplied to per unit price, to calculate |
| A. | ultiple budget variable |
| B. | ixed budget variable |
| C. | lexible budget variable |
| D. | onstant budget |
| Answer» D. onstant budget | |
| 100. |
An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate |
| A. | rofit variance |
| B. | nvestment variance |
| C. | ost variance |
| D. | elling price variance |
| Answer» E. | |