Accounting Practice MCQ Page 3
Multiple Choice questions for Accounting in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 1039 A predetermined overhead rate using machine hours as a basis
- is calculated by dividing actual overhead by budgeted machine hours
- results in the over absorption of overhead
- is inferior to a rate based on labour hours
- results in charging similar overheads to jobs with similar machine hours
Question: 1043 The costing associated with a typical site based contract
- means that more costs cab be identified as direct
- requires some estimate to be made of interim profits
- means that the contract account will be credited with materials at the end of thee contract
- includes all of these
Question: 1046 Using process costing the amount of cost transferred to finished goods stock is the cost of
- the equivalent production for the period
- the units completed during the period
- the units started and completed during the period
- the units in the opening Finished Goods stocks
Question: 1054 Double loop feedback
- is information designed to ensures that operations conform to plans
- is designed to assess how well the control system operates and how relevant current pians are
- is information passed up two layers of the organisation
- is information that is double checked for accuracy
Question: 1057 The distance A represents
- contribution at activity level X
- profit at activity level X
- the amount of variable costs at activity level X
- the margin of safety
Question: 1061 The distance represents
- contribution at activity level Y
- the amount of variable costs at activity level Y
- the level of sales at activity level Y
- the amount of variable costs at activity level Y
Question: 1069 Which of the following are possible causes of the changes in the graph at activity level Z
- an increase in sales value causing an increase in contribution
- a decrease in fixed costs causing an increase in variable costs
- an increase in total fixed costs and a decrease in variable costs per unit
- an increase in total variable costs and a decrease in fixed costs per unit
Question: 1078 What do the lines C and D represent
- Fixed costs and variable costs respectively
- Total costs and variable costs respectively
- Variable cost and fixed costs respectively
- Sales revenue and total costs respectively
Question: 1081 If the total expenditure on cost type X was expressed as a cost per unit of the product X would be classified as variable if
- the cost per unit changed with the level of activity
- the cost per unit was affected by inflation
- the cost per unit remained constant with changes in the level of activity
- the total expenditure on X remained the same
Question: 1085 The main purpose of cost accounting is to
- maximise profits
- help in inventory valuation
- provide information to management for decision-making
- aid in the fixation of selling prices
Question: 1086 One of the most important tools in cost planning is
- direct cost
- budget
- cost sheet
- marginal costing
Question: 1088 The purpose of cost accounting is to provide information for
- preparing costing P& L A/c
- cost control
- locating factors leading to wastages and losses
- assessing the profitability and financial position of the firm
Answers to the questions of Accounting on this page
Following list gives the correct choice for the answer of the Accounting mcqs.
1039 . D
1043 . D
1046 . C
1054 . A
1057 . A
1061 . D
1069 . C
1078 . B
1081 . C
1085 . C
1086 . B
1088 . B
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MCQ for Practicing Subject Tests