MCQOPTIONS
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MCQOPTIONS
This section includes 192 Mcqs, each offering curated multiple-choice questions to sharpen your Cost Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The sales budget variance is subtracted from flexible budget amount to calculate |
| A. | static budget amount |
| B. | unstated amount |
| C. | constant amount |
| D. | variable amount |
| Answer» B. unstated amount | |
| 2. |
The process of ensuring preventive measure to be done in all machines is classified as |
| A. | potential price response |
| B. | potential cost response |
| C. | potential budget response |
| D. | potential management response |
| Answer» E. | |
| 3. |
If an actual selling price is $400, an actual result is $250 and an actual units sold are 500, then the selling price variance will be |
| A. | $45,000 |
| B. | $55,000 |
| C. | $75,000 |
| D. | $65,000 |
| Answer» D. $65,000 | |
| 4. |
If an actual cost incurred is $627500, the flexible budget amount is $358750, then fixed overhead variance of flexible-budget will be |
| A. | $218,750 |
| B. | $238,750 |
| C. | $258,750 |
| D. | $268,750 |
| Answer» E. | |
| 5. |
The difference between actual quantity and budgeted quantity of cost allocation base is classified as |
| A. | fixed overhead efficiency variance |
| B. | variable overhead efficiency variance |
| C. | variable overhead manufacturing variance |
| D. | fixed overhead manufacturing variance |
| Answer» C. variable overhead manufacturing variance | |
| 6. |
The first step in developing cost rate for budgeted variable overhead is to |
| A. | choose the budgeting period |
| B. | select allocation bases |
| C. | identify variable overhead cost |
| D. | compute the per unit rate |
| Answer» B. select allocation bases | |
| 7. |
An unfavorable volume-production variance is used to measure the amount of |
| A. | fixed setup cost |
| B. | total setup cost |
| C. | variable setup cost |
| D. | total overhead cost |
| Answer» B. total setup cost | |
| 8. |
If the flexible budget amount is $82000 and the actual result is $45000 then the flexible budget amount will be |
| A. | $97,000 |
| B. | $87,000 |
| C. | $27,000 |
| D. | $37,000 |
| Answer» E. | |
| 9. |
The budget, which predicts the effect of given level of operations on a cash position is classified as |
| A. | market budget |
| B. | price schedule |
| C. | planned schedule |
| D. | cash budget |
| Answer» E. | |
| 10. |
The measure which provides the feedback on manager's performance, considering individual aspects only is classified as |
| A. | effectively measure |
| B. | lump sum measure |
| C. | non-financial measures |
| D. | financial measures |
| Answer» D. financial measures | |
| 11. |
The practice, which makes target more achievable by underestimating revenues or overestimating cost is called |
| A. | cost slack |
| B. | target slack |
| C. | budgetary slack |
| D. | revenue slack |
| Answer» D. revenue slack | |
| 12. |
The master budget includes all the projections of company's budget and focuses on |
| A. | serial correlation |
| B. | marketing plan |
| C. | financial plan |
| D. | both b and c |
| Answer» E. | |
| 13. |
The budget sales, plus target ending finished goods inventory, minus beginning finished goods inventory is equal to |
| A. | budget production |
| B. | planned production |
| C. | setup production |
| D. | stand by production |
| Answer» B. planned production | |
| 14. |
The what-if technique, which examines changes in results, if original prediction would not be achieved is called |
| A. | change analysis |
| B. | original analysis |
| C. | sensitivity analysis |
| D. | predicted analysis |
| Answer» D. predicted analysis | |
| 15. |
The financial statements and the budget plans of some companies are also called |
| A. | cost statement |
| B. | preformed statement |
| C. | sales statement |
| D. | market statement |
| Answer» C. sales statement | |
| 16. |
An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate |
| A. | profit variance |
| B. | investment variance |
| C. | cost variance |
| D. | selling price variance |
| Answer» E. | |
| 17. |
The document, which contains the information about the used material sequence, detail and quantity of raw material is classified as |
| A. | bill of materials |
| B. | bill of sequence |
| C. | bill of detail |
| D. | bill of raw materials |
| Answer» B. bill of sequence | |
| 18. |
The type of plan of a company, which quantities the expectations of cash flows, income and financial position is known as |
| A. | budget |
| B. | batching |
| C. | complexity |
| D. | process |
| Answer» B. batching | |
| 19. |
The production volume variance is also called |
| A. | denominator level variance |
| B. | numerator level variance |
| C. | price level variance |
| D. | cost level variance |
| Answer» B. numerator level variance | |
| 20. |
The static budget amount is subtracted from the flexible budget amount to calculate the |
| A. | sales budget variance |
| B. | cost budget variance |
| C. | resultant budget variance |
| D. | static budget variance |
| Answer» B. cost budget variance | |
| 21. |
An activity based costing hierarchy includes |
| A. | batch level |
| B. | output unit level |
| C. | facility and product sustaining |
| D. | all of above |
| Answer» E. | |
| 22. |
If the fixed setup cost is $21000 and the variable setup cost is $11000, then the setup cost would be |
| A. | $12,000 |
| B. | $15,000 |
| C. | $10,000 |
| D. | $32,000 |
| Answer» E. | |
| 23. |
In master budgeting, the cost drivers for manufacturing overhead costs are |
| A. | direct manufacturing labor-hours |
| B. | setup labor-hours |
| C. | budgeted labor-hours |
| D. | both a and b |
| Answer» E. | |
| 24. |
If the flexible budget amount is $62000 and an actual result is $35000, then the flexible budget amount would be |
| A. | $27,000 |
| B. | $37,000 |
| C. | $97,000 |
| D. | $87,000 |
| Answer» B. $37,000 | |
| 25. |
An act of making sure, that all the employees must understand the goals is classified as |
| A. | coordination |
| B. | communication |
| C. | annual profit plan |
| D. | budgeting |
| Answer» C. annual profit plan | |
| 26. |
Usage of more resources to develop fundamental standards is classified as |
| A. | potential budget response |
| B. | potential management response |
| C. | potential price response |
| D. | potential cost response |
| Answer» C. potential price response | |
| 27. |
If the actual payment to labor is $1200 and the budgeted rate is $1000, then the labor price variance would be |
| A. | less than zero |
| B. | equal to zero |
| C. | favorable |
| D. | unfavorable |
| Answer» E. | |
| 28. |
The difference between the flexible budget amount and the corresponding static budget amount is classified as |
| A. | sales revenue variance |
| B. | cost profit variance |
| C. | profit volume variance |
| D. | sales volume variance |
| Answer» E. | |
| 29. |
The variance is solely because of the difference between budgeted quantity and the |
| A. | flexible hours |
| B. | actual cost |
| C. | actual quantity |
| D. | actual price |
| Answer» D. actual price | |
| 30. |
The budgeted quantity of output unit is 250 and budgeted overhead fixed cost is $150, then budgeted fixed overhead output unit will be |
| A. | $67,500 |
| B. | $57,500 |
| C. | $47,500 |
| D. | $37,500 |
| Answer» E. | |
| 31. |
In manufacturing settings, the budgeted fixed overhead rate is classified as |
| A. | production numerator level |
| B. | production denominator level |
| C. | production cost level |
| D. | production fixed level |
| Answer» C. production cost level | |
| 32. |
The budget which calculates the expected revenues and expected costs, based on the actual output quantity is named as |
| A. | flexible budget |
| B. | fixed budget |
| C. | variable budget |
| D. | multiplied budget |
| Answer» B. fixed budget | |
| 33. |
The quantitative expression, of action plan by the management of the firm for a specified period of time is classified as |
| A. | complexity |
| B. | process |
| C. | budget |
| D. | batching |
| Answer» D. batching | |
| 34. |
If the cost of indirect support labor is $5000, equipment maintenance setup cost is $7000 and machinery leasing cost is $4000 then variable fixed cost will be |
| A. | $16,000 |
| B. | $12,000 |
| C. | $18,000 |
| D. | $21,000 |
| Answer» C. $18,000 | |
| 35. |
A cost, consists of some fixed and some variable cost with respect to machine setup hours is termed as |
| A. | setup cost |
| B. | batch cost |
| C. | facility cost |
| D. | lump sum cost |
| Answer» B. batch cost | |
| 36. |
If the variable overhead flexible budget variance is $26000 and the flexible budget amount is $15000, then the actual incurred costs will be |
| A. | $21,000 |
| B. | $11,000 |
| C. | $31,000 |
| D. | $41,000 |
| Answer» E. | |
| 37. |
If the sales budget variance for operating income is $58000 and the static budget amount is $15000, then flexible budget amount will be |
| A. | $43,000 |
| B. | $73,000 |
| C. | $63,000 |
| D. | $53,000 |
| Answer» C. $63,000 | |
| 38. |
If the actual input quantity is 300 units and the budgeted input quantity is 100 units, then the efficiency variance will be |
| A. | 600 units |
| B. | 200 units |
| C. | 400 units |
| D. | 500 units |
| Answer» C. 400 units | |
| 39. |
If the actual selling price is $500, actual result is $250 and the actual units sold are 350, then the selling price variance will be |
| A. | $87,500 |
| B. | $97,500 |
| C. | $67,500 |
| D. | $57,500 |
| Answer» B. $97,500 | |
| 40. |
If the actual result is $26000, the flexible budget amount is $13000, then the flexible budget amount will be |
| A. | $39,000 |
| B. | $49,000 |
| C. | $13,000 |
| D. | $15,000 |
| Answer» D. $15,000 | |
| 41. |
If the static budget amount is $9000, the flexible budget amount is $20000, then the sales volume variance will be |
| A. | $29,000 |
| B. | $11,000 |
| C. | $15,000 |
| D. | $10,000 |
| Answer» C. $15,000 | |
| 42. |
If the fixed overhead allocated for actual output unit is $9800 and budgeted fixed overhead is $22000, then production volume variance would be |
| A. | $31,800 |
| B. | $12,300 |
| C. | $12,200 |
| D. | $41,800 |
| Answer» D. $41,800 | |
| 43. |
The part of the master budget, which covers the capital expenditures, budgeted statement of cash flows and balance sheets are classified as |
| A. | financial budget |
| B. | capital budget |
| C. | cash flows budget |
| D. | balanced budget |
| Answer» B. capital budget | |
| 44. |
The less skilled workers for operating machines then expected are classified as |
| A. | cause for exceeding budget |
| B. | cause of less employment |
| C. | fixed cost variation |
| D. | variable cost variation |
| Answer» B. cause of less employment | |
| 45. |
The third step in developing operating budget is |
| A. | analysis of batches |
| B. | analysis of batches |
| C. | analysis of products |
| D. | making predictions about future |
| Answer» E. | |
| 46. |
The difference between the flexible budget amount and the corresponding actual result is called |
| A. | corresponding variance |
| B. | resultant variance |
| C. | flexible budget variance |
| D. | static budget variance |
| Answer» D. static budget variance | |
| 47. |
If the flexible budget amount is $21500 and fixed overhead flexible budget variance is $10000, then actual incurred cost will be |
| A. | $61,500 |
| B. | $31,500 |
| C. | $41,500 |
| D. | $51,500 |
| Answer» C. $41,500 | |
| 48. |
The non-financial and financial aspects of the plan by the company management, is classified as |
| A. | complexity |
| B. | process |
| C. | budget |
| D. | batching |
| Answer» D. batching | |
| 49. |
If an actual price of material is $700 and the budgeted price is $900, then the |
| A. | cost variance is favorable |
| B. | cost variance is unfavorable |
| C. | price variance is favorable |
| D. | price variance is unfavorable |
| Answer» D. price variance is unfavorable | |
| 50. |
If the sales budget variance is $57000 and the flexible budget amount is $97000, then the static budget amount will be |
| A. | $40,000 |
| B. | $154,000 |
| C. | $164,000 |
| D. | $124,000 |
| Answer» B. $154,000 | |