Basic Accounting Concepts MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Basic Accounting Concepts, a fundamental topic in the field of Cost Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Basic Accounting Concepts MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Basic Accounting Concepts mcq questions that explore various aspects of Basic Accounting Concepts problems. Each MCQ is crafted to challenge your understanding of Basic Accounting Concepts principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Cost Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Basic Accounting Concepts MCQs are your pathway to success in mastering this essential Cost Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Basic Accounting Concepts. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Basic Accounting Concepts knowledge to the test? Let's get started with our carefully curated MCQs!

Basic Accounting Concepts MCQs | Page 1 of 8

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Q1.
An inward delivery charges and custom duties are classified as

a.

direct labor costs

b.

indirect labor costs

c.

direct material costs

d.

indirect material costs

Discuss
Answer: (c).direct material costs
Q2.
The supplies, plant maintenance, plant rent, plant insurance and cleaning labor come under the type of costs called

a.

labor costs

b.

factory overhead costs

c.

finished costs

d.

manufacturing costs

Discuss
Answer: (b).factory overhead costs
Q3.
If the conversion cost is $25000 and direct manufacturing labor cost is $17000, then the manufacturing overhead cost would be

a.

$14,700

b.

$68,000

c.

$8,000

d.

$42,000

Discuss
Answer: (c).$8,000
Q4.
For the companies in service sector, the cost which is not considerable is

a.

Inventoriable costs

b.

finished costs

c.

factory overhead costs

d.

manufacturing overhead costs

Discuss
Answer: (a).Inventoriable costs
Q5.
An overtime is considered in cost accounting as

a.

indirect costs

b.

overhead costs

c.

premium costs

d.

both a and b

Discuss
Answer: (d).both a and b
Q6.
In the income statement of merchandising costs, the period cost includes all costs which are not related to

a.

cost of resale goods

b.

cost of manufacturing goods

c.

timed resale of goods

d.

cost of purchased goods

Discuss
Answer: (d).cost of purchased goods
Q7.
The labor related to the manufacturing of the product can be classified under

a.

direct manufacturing labor costs

b.

indirect manufacturing labor costs

c.

work in process cost

d.

finished costs

Discuss
Answer: (a).direct manufacturing labor costs
Q8.
The direct material costs are added into direct manufacturing costs, to calculate

a.

discuss costs

b.

prime costs

c.

resale cost

d.

merchandise costs

Discuss
Answer: (b).prime costs
Q9.
The direct manufacturing labor costs is added into manufacturing overhead cost to calculate

a.

transaction costs

b.

conversion costs

c.

resale costs

d.

merchandise costs

Discuss
Answer: (b).conversion costs
Q10.
In cost terms, the direct manufacturing labor cost is included in

a.

manufacturing costs

b.

prime costs

c.

conversion costs

d.

both b and c

Discuss
Answer: (d).both b and c
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