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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.
| 51. |
In production volume variance, an acquiring fixed cost such as equipment and plant lease is known as |
| A. | lump sum price amount |
| B. | lump sum fixed cost |
| C. | lump sum variable cost |
| D. | lump sum manufacturing cost |
| Answer» C. lump sum variable cost | |
| 52. |
The budget plan in many companies is also referred as |
| A. | profit plan |
| B. | sales plan |
| C. | cost plan |
| D. | marketing plan |
| Answer» B. sales plan | |
| 53. |
The second step in developing operating budget is to |
| A. | plan coordination |
| B. | plan accounts |
| C. | obtain information |
| D. | coverage information |
| Answer» D. coverage information | |
| 54. |
The planning of financial aid to coordinate; what is to be done for implementation of the plan is classified as |
| A. | budget |
| B. | batching |
| C. | complexity |
| D. | process |
| Answer» B. batching | |
| 55. |
The factor which provides hedge to managers in adverse and unexpected circumstances is known as |
| A. | budgetary slack |
| B. | costly slack |
| C. | influential slack |
| D. | target slack |
| Answer» B. costly slack | |
| 56. |
The number of units are 5000 and the per unit price is $60, then the flexible budget variable would be |
| A. | $5,000,000 |
| B. | $3,000,000 |
| C. | $2,000,000 |
| D. | $1,000,000 |
| Answer» C. $2,000,000 | |
| 57. |
If fixed overhead allocated for actual output units is $25000 and the production volume variance is $9000, then budgeted fixed overhead will be |
| A. | $34,000 |
| B. | $24,000 |
| C. | $16,000 |
| D. | $18,000 |
| Answer» B. $24,000 | |
| 58. |
An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as |
| A. | variable batch costs |
| B. | fixed batch costs |
| C. | variable setup costs |
| D. | fixed setup costs |
| Answer» D. fixed setup costs | |
| 59. |
In flexible budget analysis, the variable overhead flexible budget variance is equal to |
| A. | fixed cost-variable budget amount |
| B. | actual cost-flexible budget amount |
| C. | variable cost-allocated amount |
| D. | actual cost-variable amount |
| Answer» C. variable cost-allocated amount | |
| 60. |
If the sales budget variance is $47000 and the flexible budget amount is $77000, then the static budget amount will be |
| A. | $144,000 |
| B. | $134,000 |
| C. | $124,000 |
| D. | $30,000 |
| Answer» E. | |
| 61. |
An expected performance of the company is also known as |
| A. | price requirements |
| B. | supply requirements |
| C. | budgeted performance |
| D. | demand requirements |
| Answer» D. demand requirements | |
| 62. |
The first step in developing an operating budget is to |
| A. | identify the product |
| B. | identify the problem |
| C. | identify the quartiles |
| D. | identify the percentiles |
| Answer» C. identify the quartiles | |
| 63. |
If the static budget is $405000 and the flexible budget amount is $620000, then the sales budget variance will be |
| A. | $215,000 |
| B. | $315,000 |
| C. | $415,000 |
| D. | $515,000 |
| Answer» B. $315,000 | |
| 64. |
The machine budgeted time standards are set too tight, is the possible cause for |
| A. | priced budget |
| B. | exceeding budget |
| C. | fixed budget |
| D. | variable budget |
| Answer» C. fixed budget | |
| 65. |
All the salaries are paid to supervisors and engineers and cost of leasing equipment are classified as |
| A. | variable setup costs |
| B. | fixed setup costs |
| C. | variable batch costs |
| D. | fixed batch costs |
| Answer» C. variable batch costs | |
| 66. |
If the total setup cost is $35000 and fixed setup cost is $19000, then the variable fixed cost would be |
| A. | $16,000 |
| B. | $54,000 |
| C. | $64,000 |
| D. | $74,000 |
| Answer» B. $54,000 | |
| 67. |
A measure which evaluates overall tradeoff and effect among non-financial performance measure is |
| A. | non-financial measures |
| B. | financial measures |
| C. | effective measure |
| D. | lump sum measure |
| Answer» C. effective measure | |
| 68. |
The better administration of budget in budgeting plans require |
| A. | intelligent interpretations |
| B. | participation |
| C. | persuasion |
| D. | all of above |
| Answer» E. | |
| 69. |
The fixed overhead allocated for actual output unit is subtracted from budgeted fixed overhead to calculate |
| A. | budget variance |
| B. | production volume variance |
| C. | price volume variance |
| D. | cost volume variance |
| Answer» C. price volume variance | |
| 70. |
If the static budget variance is $38000 and the static budget amount is $12000, then an actual result would be |
| A. | $36,000 |
| B. | $60,000 |
| C. | $26,000 |
| D. | $50,000 |
| Answer» E. | |
| 71. |
To calculate fixed overhead flexible budget variance, an actual incurred cost is subtracted from |
| A. | flexible budget amount |
| B. | constant amount |
| C. | variable amount |
| D. | production amount |
| Answer» B. constant amount | |
| 72. |
In costing and budgeting hierarchy, an example of product sustaining cost is |
| A. | initial offering cost |
| B. | batch marketing cost |
| C. | product marketing cost |
| D. | product design cost |
| Answer» E. | |
| 73. |
If the salaries of engineers are $3000, the salaries of supervisors are $4000 and the equipment leasing cost is $3000, then fixed setup costs will be |
| A. | $10,000 |
| B. | $1,000 |
| C. | $7,000 |
| D. | $4,000 |
| Answer» B. $1,000 | |
| 74. |
The higher plant leasing, higher administrative costs and higher depreciation on equipment and plants are all the factors of |
| A. | favorable spending variance |
| B. | unfavorable spending variance |
| C. | favorable price variance |
| D. | unfavorable price variance |
| Answer» C. favorable price variance | |
| 75. |
An actual quantity of cost allocation base is $56000, budgeted quantity of cost allocation base is $17000, then the variable overhead efficiency variance is |
| A. | $39,000 |
| B. | $49,000 |
| C. | $59,000 |
| D. | $73,000 |
| Answer» B. $49,000 | |
| 76. |
The degree of influence that a manager would have on the revenues, cost, profit and investment is known as |
| A. | controllability |
| B. | influential power |
| C. | responsibility |
| D. | all of above |
| Answer» B. influential power | |
| 77. |
The flexible budget amount is added to flexible budget variance to calculate |
| A. | static result |
| B. | actual result |
| C. | secondary result |
| D. | primary result |
| Answer» C. secondary result | |
| 78. |
If an actual quantity of cost allocation base is $48000 and budgeted quantity of cost allocation base is $28000, then variable overhead efficiency variance would be |
| A. | $20,000 |
| B. | $76,000 |
| C. | $86,000 |
| D. | $96,000 |
| Answer» B. $76,000 | |
| 79. |
An actual input quantity is 200 units and the budgeted input quantity is 50 units, then the efficiency variance will be |
| A. | 275 units |
| B. | 250 units |
| C. | 150 units |
| D. | 650 units |
| Answer» D. 650 units | |
| 80. |
The degree which predetermines target or income achieved, can be grouped under |
| A. | growth evaluation |
| B. | performance evaluation |
| C. | efficiency |
| D. | effectiveness |
| Answer» E. | |
| 81. |
If the budgeted input price is $50, the price variance is $30 then an actual price will be |
| A. | $100 |
| B. | $20 |
| C. | $80 |
| D. | $60 |
| Answer» D. $60 | |
| 82. |
If the actual cost is $356000 and the flexible budget cost is $255000, then the flexible budget variance will be |
| A. | $104,000 |
| B. | $103,000 |
| C. | $101,000 |
| D. | $102,000 |
| Answer» D. $102,000 | |
| 83. |
If the budgeted quantity of output unit is 450 and budgeted overhead fixed cost is $250, then budgeted fixed overhead output unit will be |
| A. | $142,500 |
| B. | $112,500 |
| C. | $122,500 |
| D. | $132,500 |
| Answer» C. $122,500 | |
| 84. |
The third step in developing operating budget is to |
| A. | choose the budgeting period |
| B. | select allocation bases |
| C. | identify variable overhead cost |
| D. | compute the per unit rate |
| Answer» D. compute the per unit rate | |
| 85. |
In overhead cost variance analysis, the variable overhead does not include |
| A. | favorable volume variance |
| B. | profit volume variance |
| C. | cost volume variance |
| D. | production volume variance |
| Answer» E. | |
| 86. |
In the budget hierarchy, the material handling cost is |
| A. | fixed manufacturing cost |
| B. | batch level cost |
| C. | per unit cost |
| D. | factory overall cost |
| Answer» C. per unit cost | |
| 87. |
The type of accounting, which focuses on whom should be asked for information and whom not, will be categorized as |
| A. | focused accounting |
| B. | responsibility accounting |
| C. | information accounting |
| D. | blame accounting |
| Answer» C. information accounting | |
| 88. |
If the budgeted total cost in fixed overhead is $465200 and the budgeted total quantity is $8750, then budgeted fixed overhead cost per unit will be |
| A. | $83.17 |
| B. | $73.17 |
| C. | $53.17 |
| D. | $63.17 |
| Answer» D. $63.17 | |
| 89. |
The continuous budget is also known as |
| A. | rolling budget |
| B. | pin budget |
| C. | specific budget |
| D. | past budget |
| Answer» B. pin budget | |
| 90. |
If an actual incurred cost is $387500 and the flexible budget amount is $168750, then fixed overhead variance of flexible budget would be |
| A. | $518,750 |
| B. | $418,750 |
| C. | $218,750 |
| D. | $318,750 |
| Answer» D. $318,750 | |
| 91. |
The cash receipts are added in to beginning cash balance to calculate |
| A. | total goods manufactured |
| B. | total cash available |
| C. | total revenue |
| D. | total goods sold |
| Answer» C. total revenue | |
| 92. |
The mathematical relationships exist between operating and financing activities that affect master budget are called |
| A. | math plan model |
| B. | financial planning models |
| C. | operating plan models |
| D. | master plan models |
| Answer» C. operating plan models | |
| 93. |
In Kaizen budgeting, the costs are based on all the improvements which is |
| A. | to be implemented |
| B. | based on current practice |
| C. | based on past prices |
| D. | based on sold quantity |
| Answer» B. based on current practice | |
| 94. |
The starting point in the operating budget is |
| A. | cost budget |
| B. | material list |
| C. | revenue budget |
| D. | list of investors |
| Answer» D. list of investors | |
| 95. |
If the sales budget variance for operating income is $68000 and the static budget amount is $19000, then flexible budget amount will be |
| A. | $47,000 |
| B. | $57,000 |
| C. | $87,000 |
| D. | $97,000 |
| Answer» D. $97,000 | |
| 96. |
If the flexible budget amount is $26000 and fixed overhead flexible budget variance is $12500, then actual incurred cost would be |
| A. | $38,500 |
| B. | $48,500 |
| C. | $58,500 |
| D. | $13,500 |
| Answer» B. $48,500 | |
| 97. |
The model which refers possibility for management to conduct sensitivity analysis can be categorized under |
| A. | investment planning models |
| B. | financial planning models |
| C. | cost planning models |
| D. | revenues forecast models |
| Answer» C. cost planning models | |
| 98. |
If fixed overhead allocated for actual output units is $36000 and the production volume variance is $7000, then budgeted fixed overhead will be |
| A. | $43,000 |
| B. | $42,000 |
| C. | $29,000 |
| D. | $19,000 |
| Answer» B. $42,000 | |
| 99. |
The costing technique, which classify all the activities in costing hierarchy is classified as |
| A. | activity based costing |
| B. | non-financial costing |
| C. | profit costing |
| D. | lump sum costing |
| Answer» B. non-financial costing | |
| 100. |
If the fixed setup cost is $32000 and the variable setup cost is $12000, then the setup cost will be |
| A. | $20,000 |
| B. | $34,000 |
| C. | $44,000 |
| D. | $35,000 |
| Answer» D. $35,000 | |