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.
| 101. |
The variable overhead flexible budget variance is added to flexible budget amount to calculate |
| A. | actual cost incurred |
| B. | fixed cost incurred |
| C. | variable cost incurred |
| D. | manufacturing cost incurred |
| Answer» B. fixed cost incurred | |
| 102. |
In overhead cost variance analysis, the fixed overhead does not include |
| A. | efficiency variance |
| B. | unfavorable variance |
| C. | production volume variance |
| D. | favorable variance |
| Answer» B. unfavorable variance | |
| 103. |
The last step in developing operating budget is |
| A. | implementing income |
| B. | implementing the decision |
| C. | efficient implementation |
| D. | effective implementation |
| Answer» C. efficient implementation | |
| 104. |
The determined price at which the company expects to pay for every single unit is called |
| A. | standard price |
| B. | input price |
| C. | actual input |
| D. | output price |
| Answer» B. input price | |
| 105. |
If the actual cost is $265000 and the flexible budget cost is $156000, then the flexible budget variance will be |
| A. | $409,000 |
| B. | $109,000 |
| C. | $209,000 |
| D. | $309,000 |
| Answer» C. $209,000 | |
| 106. |
In management control, the point of reference for making the comparisons of performance is |
| A. | focused performance |
| B. | merchandise performance |
| C. | distribution performance |
| D. | expected performance |
| Answer» E. | |
| 107. |
An unfavorable variance in static budget is also known as |
| A. | favorable variance |
| B. | adverse variance |
| C. | adverse standard deviation |
| D. | unfavorable variance |
| Answer» C. adverse standard deviation | |
| 108. |
The flexible budget variance for the revenues of company is classified as |
| A. | selling price variance |
| B. | investment variance |
| C. | profit variance |
| D. | primary variance |
| Answer» B. investment variance | |
| 109. |
The cost influences by the responsibility center manager who is considered as |
| A. | manager cost |
| B. | influential cost |
| C. | center cost |
| D. | controllable cost |
| Answer» E. | |
| 110. |
Of the cost allocation base, the difference between actual and budgeted variable overhead cost multiplied by actual quantity for actual output is classified as |
| A. | variable overhead spending variance |
| B. | fixed overhead spending variance |
| C. | constant spending variance |
| D. | potential spending variance |
| Answer» B. fixed overhead spending variance | |
| 111. |
If the static budget amount is $6000 and the flexible budget amount is $15000, then the sales volume variance will be |
| A. | $9,000 |
| B. | $8,000 |
| C. | $12,000 |
| D. | $21,000 |
| Answer» B. $8,000 | |
| 112. |
If the indirect manufacturing labor is $20000, power cost is $5000, maintenance and supplies are of $10000 then the manufacturing budget will be |
| A. | $5,000 |
| B. | $35,000 |
| C. | $15,000 |
| D. | $45,000 |
| Answer» C. $15,000 | |
| 113. |
If the static budget is $208000 and the flexible budget amount is $305000, then the sales budget variance will be |
| A. | $67,000 |
| B. | $97,000 |
| C. | $57,000 |
| D. | $47,000 |
| Answer» C. $57,000 | |
| 114. |
The consideration of increased operating income relative to budgeted amount is classified as |
| A. | favorable variance |
| B. | unfavorable variance |
| C. | revenue variance |
| D. | cost variance |
| Answer» B. unfavorable variance | |
| 115. |
Static budget variance for operating income is added in to static budget amount to calculate |
| A. | actual result |
| B. | expected results |
| C. | expected cost |
| D. | expected revenue |
| Answer» B. expected results | |
| 116. |
If an actual variable quantity is 70, the actual and budgeted overhead cost of allocation is $8650 and $3500 respectively, then the variable overhead spending variance will be |
| A. | $660,500 |
| B. | $560,500 |
| C. | $460,500 |
| D. | $360,500 |
| Answer» E. | |
| 117. |
The higher and accurate budgeted profit forecast of managers lead to |
| A. | high incentive bonus |
| B. | low incentive bonus |
| C. | influence bonus |
| D. | revenue bonus |
| Answer» B. low incentive bonus | |
| 118. |
The direct labor, salary outlays and direct material purchases are classified as |
| A. | price disbursements |
| B. | cash disbursements |
| C. | budget disbursements |
| D. | goods disbursements |
| Answer» C. budget disbursements | |
| 119. |
Number of units are multiplied to per unit price, to calculate |
| A. | multiple budget variable |
| B. | fixed budget variable |
| C. | flexible budget variable |
| D. | constant budget |
| Answer» D. constant budget | |
| 120. |
An indirect support labor costs and costs of indirect energy are considered as |
| A. | variable batch costs |
| B. | fixed batch costs |
| C. | variable setup costs |
| D. | fixed setup costs |
| Answer» D. fixed setup costs | |
| 121. |
The step of installing production scheduling procedure, to improve plant operations is considered as |
| A. | potential cost response |
| B. | potential budget response |
| C. | potential management response |
| D. | potential price response |
| Answer» D. potential price response | |
| 122. |
The 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 | |
| 123. |
The lower plant leasing, lower administrative costs, lower depreciation on equipment and plant are all the factors of |
| A. | favorable price variance |
| B. | unfavorable price variance |
| C. | favorable spending variance |
| D. | unfavorable spending variance |
| Answer» D. unfavorable spending variance | |
| 124. |
If an actual variable quantity is 50, the actual and budgeted overhead cost of allocation is $7550 and $4500 respectively, then the variable overhead spending variance could be |
| A. | $182,500 |
| B. | $152,500 |
| C. | $162,500 |
| D. | $172,500 |
| Answer» C. $162,500 | |
| 125. |
If the budgeted total cost in fixed overhead is $385000 and the budgeted total quantity is $6730, then budgeted fixed overhead cost per unit will be |
| A. | $57.21 per unit |
| B. | $67.21 per unit |
| C. | $77.21 per unit |
| D. | $87.21 per unit |
| Answer» B. $67.21 per unit | |
| 126. |
If the variable overhead flexible budget variance is $37000 and the flexible budget amount is $10000, then the actual incurred costs would be |
| A. | $27,000 |
| B. | $25,000 |
| C. | $47,000 |
| D. | $57,000 |
| Answer» D. $57,000 | |
| 127. |
The fourth step in development of operating budget is to |
| A. | identify variable overhead cost |
| B. | compute the per unit rate |
| C. | choose the budgeting period |
| D. | select allocation bases |
| Answer» C. choose the budgeting period | |
| 128. |
The plan of action; how an organization meets its opportunities and capabilities is classified as |
| A. | action plan |
| B. | strategy |
| C. | step wise plan |
| D. | complex plan |
| Answer» C. step wise plan | |
| 129. |
The focus on budget cost of all the activities necessary to sell and produce market offerings is known as |
| A. | cost based budgeting |
| B. | activity based budgeting |
| C. | production based budgeting |
| D. | raw material budgeting |
| Answer» C. production based budgeting | |
| 130. |
The compelling strategic plan, promoting coordination and providing framework of performance are |
| A. | advantages of budget |
| B. | disadvantages of budget |
| C. | advantages of costing method |
| D. | disadvantages of costing method |
| Answer» B. disadvantages of budget | |
| 131. |
If the number of units are 3000 and the per unit price is $500, then the 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 | |
| 132. |
The budget which specifies an operating and financial plan, usually for a fiscal year or any specific period of time is classified as |
| A. | annual budget |
| B. | operating budget |
| C. | specific budget |
| D. | master budget |
| Answer» E. | |
| 133. |
The budget which is planned around a single output level is called |
| A. | marketing budget |
| B. | methodological budget |
| C. | static budget |
| D. | varied budget |
| Answer» D. varied budget | |
| 134. |
The subtracted flexible budget amount can form an actual result to calculate |
| A. | unstated budget variance |
| B. | flexible budget variance |
| C. | constant budget variance |
| D. | static budget variance |
| Answer» C. constant budget variance | |
| 135. |
In the budgeted fixed overhead rate, the number of machine hours are considered as |
| A. | denominator level |
| B. | numerator level |
| C. | fixed level |
| D. | variable level |
| Answer» B. numerator level | |
| 136. |
The quantity of input which is carefully determined is called |
| A. | output unit |
| B. | input unit |
| C. | standard input |
| D. | standard output |
| Answer» D. standard output | |
| 137. |
If the 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 | |
| 138. |
An actual rate paid to labor is greater than the budgeted rate, it means that the |
| A. | cost is unfavorable |
| B. | variance is unfavorable |
| C. | variance is favorable |
| D. | cost is favorable |
| Answer» C. variance is favorable | |
| 139. |
If the budget sales units are 5000, the ending inventory is 4000 units and the beginning inventory is 1000, then the budget production will be |
| A. | 4000 units |
| B. | 5000 units |
| C. | 8000 units |
| D. | 10000 units |
| Answer» D. 10000 units | |
| 140. |
The flexible budget amount is added in to fixed overhead flexible budget variance to calculate |
| A. | incurred manufacturing |
| B. | incurred production cost |
| C. | actual incurred cost |
| D. | incurred labor cost |
| Answer» D. incurred labor cost | |
| 141. |
If the actual result is $25000 and the flexible budget amount is $11000, then the flexible budget amount is |
| A. | $36,000 |
| B. | $46,000 |
| C. | $56,000 |
| D. | $14,000 |
| Answer» E. | |
| 142. |
The budgeting method, which incorporates an improvement anticipated in budgeting period into budget numbers, can be classified as |
| A. | anticipated budgeting |
| B. | number budgeting |
| C. | predict budgeting |
| D. | kaizen budgeting |
| Answer» E. | |
| 143. |
If the total setup cost is $42000 and fixed setup cost is $17000, then the variable fixed cost would be |
| A. | $59,000 |
| B. | $25,000 |
| C. | $15,000 |
| D. | $39,000 |
| Answer» C. $15,000 | |
| 144. |
If the budget sales units are 2000, an ending inventory is 3000 units and the beginning inventory is 1000, then the budget production would be |
| A. | 6000 units |
| B. | 4000 units |
| C. | no units |
| D. | 8000 units |
| Answer» C. no units | |
| 145. |
If the price variance is $30 and the budgeted input price is $80, then an actual price would be |
| A. | −$110 |
| B. | −$50 |
| C. | $110 |
| D. | $50 |
| Answer» D. $50 | |
| 146. |
The lump sum cost that remains unchanged in total despite of changes in total volume is classified as |
| A. | unchanged price |
| B. | unchanged cost |
| C. | fixed overhead cost |
| D. | variable overhead cost |
| Answer» D. variable overhead cost | |
| 147. |
If the fixed overhead allocated for actual output unit is $7500 and budgeted fixed overhead is $21000, then the production volume variance will be |
| A. | $16,500 |
| B. | $15,500 |
| C. | $14,500 |
| D. | $13,500 |
| Answer» E. | |
| 148. |
The budgeted income statement and the supporting budget schedules are categorized under |
| A. | focused statement |
| B. | slack statement |
| C. | budgeted income statement |
| D. | operating budget |
| Answer» E. | |
| 149. |
The type of budget, which is always available for the specified period of future is called |
| A. | period budget |
| B. | batch budget |
| C. | discontinued budget |
| D. | continuous budget |
| Answer» E. | |
| 150. |
The actual price of material is less than budgeted price, this means that |
| A. | price variance is favorable |
| B. | price variance is unfavorable |
| C. | cost variance is favorable |
| D. | cost variance is unfavorable |
| Answer» B. price variance is unfavorable | |