Accounting MCQs

Practice and Learn through MCQs and Quizzes. W3Definitions.com have 1082 Accounting MCQs

A company must eliminate all those activities that do not add value to all products or services in planning of

  • A. variable overhead cost
  • B. fixed overhead cost
  • C. fixed batch cost
  • D. variable batch cost
  • Correct Answer: Option A

A concept used to define learning curve in broader application is called

  • A. discrete curve
  • B. fixed curve
  • C. mixed curve
  • D. experience curve
  • Correct Answer: Option D

A concept which explains a received money in present time, is more valuable than money received in future is called

  • A. lead value of money
  • B. storage value of money
  • C. time value of money
  • D. cash value of money
  • Correct Answer: Option C

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
  • Correct Answer: Option A

A costing system, which focuses on individual activities as particular cost object is classified as

  • A. activity based costing
  • B. improved costing
  • C. learned improvements
  • D. positive effectiveness
  • Correct Answer: Option A

A desire of an individual to give good performance for self-satisfaction is known as

  • A. intrinsic motivation
  • B. extrinsic motivation
  • C. monetary motivation
  • D. bounded motivation
  • Correct Answer: Option A

A desire to achieve a particular goal with pursuit of that goal is called

  • A. motivation
  • B. goal congruence
  • C. effort
  • D. autonomy
  • Correct Answer: Option A

A document which consists information about labor time usage, for specific job in a specific department, is known as

  • A. selling time record
  • B. labor time record
  • C. buying time record
  • D. direct time record
  • Correct Answer: Option B

A document which contains information about materials of specific product, in specific department comes under

  • A. costing method
  • B. selling method
  • C. material acquisition method
  • D. none of above
  • Correct Answer: Option C

A group of individual indirect cost item is defined as

  • A. direct pool
  • B. cost pool
  • C. indirect pool
  • D. item pool
  • Correct Answer: Option B

A helpful technique, for accurate forecasts about costs to be incurred in future is a part of

  • A. unit estimation
  • B. production estimation
  • C. cost estimation
  • D. price estimation
  • Correct Answer: Option C

A joint cost allocation method is based on relative value of total sales, at point of split off is classified as

  • A. sales value at split off method
  • B. joint costs at split off point method
  • C. joint products value at split off method
  • D. main product cost at split off method
  • Correct Answer: Option A

A manager who is responsible for only cost of company belongs to

  • A. cost center
  • B. revenue center
  • C. profit center
  • D. investment center
  • Correct Answer: Option A

A manager, who is responsible for both cost and revenues belongs to department of

  • A. cost center
  • B. revenue center
  • C. profit center
  • D. investment center
  • Correct Answer: Option C

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
  • Correct Answer: Option B

A particular term for which specific revenue measurement is required is known as

  • A. revenue allocation
  • B. revenue object
  • C. revenue increment
  • D. reciprocal revenue
  • Correct Answer: Option B

A problem which arises because of presence of systematic pattern in residual value sequence is considered as

  • A. parallel correlation
  • B. serial correlation
  • C. auto correlation
  • D. both B and C
  • Correct Answer: Option D

A process by which employees can make decisions is divided by total number of processes to calculate

  • A. employee turnover ratio
  • B. employee empowerment ratio
  • C. employee satisfaction ratio
  • D. employee training percentage
  • Correct Answer: Option B

A product performance in comparison to its features and design is classified as

  • A. learning quality
  • B. design quality
  • C. conformance quality
  • D. business process quality
  • Correct Answer: Option C

A push through system, according to which goods are manufactured for finished inventory solely, on basis of forecasted demand can be classified as

  • A. in-time production
  • B. materials requirement planning
  • C. on-time production
  • D. pull strategy of production
  • Correct Answer: Option B

A situation when groups and individuals work together for achieving a particular goal can be classified as

  • A. motivation
  • B. goal congruence
  • C. effort
  • D. autonomy
  • Correct Answer: Option B

A technique for estimating regression line, which minimizes sum of vertical deviations squares is classified as

  • A. variable technique
  • B. least square technique
  • C. indexed technique
  • D. fixed technique
  • Correct Answer: Option B

A technique which minimizes sum of squared vertical difference, to determine regression line is considered as

  • A. negative square technique
  • B. positive square technique
  • C. least square technique
  • D. most square technique
  • Correct Answer: Option C

A technique, which accumulates and tracks costs of business function in value chain attributed to each market offering from R&D; to final customer support, is called

  • A. product life cycle
  • B. life cycle budgeting
  • C. life cycle costing
  • D. target costing
  • Correct Answer: Option C

A theory which describes techniques of operating income maximization, facing with non-bottleneck and bottle neck operations is

  • A. theory of contribution
  • B. theory of constraints
  • C. theory of conflicts
  • D. theory of maximization
  • Correct Answer: Option B

A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as

  • A. accounting period costing system
  • B. process costing system
  • C. job costing system
  • D. none of above
  • Correct Answer: Option B

According to incremental method, party which receives highest ranking in allocation of common cost is classified as

  • A. Third incremental party
  • B. second incremental party
  • C. primary party
  • D. First incremental party
  • Correct Answer: Option C

According to net present value, projects that would be acceptable must have a

  • A. negative net present value
  • B. zero net present value
  • C. positive net present value
  • D. both b and c
  • Correct Answer: Option D

Activities related to coordinating, controlling and planning flow of inventory are classified as

  • A. decisional management
  • B. throughput management
  • C. inventory management
  • D. manufacturing management
  • Correct Answer: Option C

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
  • Correct Answer: Option A

After-tax average cost of funds used by company in long run is equal to

  • A. weighted average cost of capital
  • B. economic value added
  • C. after-tax operating income
  • D. net income
  • Correct Answer: Option A

All choices for decision that are easily available to managers are classified as

  • A. outcome
  • B. actions
  • C. events
  • D. distribution
  • Correct Answer: Option B

All costs, which are assigned to manufactured products for specific calculations are classified as

  • A. contracting costs
  • B. product cost
  • C. government costs
  • D. marketing costs
  • Correct Answer: Option B

All 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
  • Correct Answer: Option B

Amount of money by which total revenues exceed breakeven revenues is classified as

  • A. margin of safety
  • B. margin of profit
  • C. margin of loss
  • D. margin of income
  • Correct Answer: Option A

An ability of an accounting system, to point out use of resources in every step of production process is called

  • A. back-flush trails
  • B. audit trails
  • C. trigger trails
  • D. lead manufacturing trails
  • Correct Answer: Option B

An ability of an organization, to offer its services or products that must be perceived by customers as unique and superior, in comparison to its competitors is called

  • A. inelastic demand
  • B. product differentiation
  • C. cost leadership
  • D. elastic demand
  • Correct Answer: Option B

An accounting approach, in which expected benefits exceed expected cost is classified as

  • A. benefit approach
  • B. cost approach
  • C. cost-benefit approach
  • D. accounting approach
  • Correct Answer: Option C

An accounting which records and measures business transactions and is followed by general accepted accounting principles is classified as

  • A. external accounting
  • B. internal accounting
  • C. business accounting
  • D. financial accounting
  • Correct Answer: Option D

An acquisition cost of raw material is to be used in manufacturing, and becoming a component of cost object is classified as

  • A. direct material costs
  • B. indirect material costs
  • C. direct labor costs
  • D. indirect labor costs
  • Correct Answer: Option A