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!

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Basic Accounting Concepts MCQs | Page 2 of 8

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Q11.
The conversion cost is $2000 and the manufacturing overhead cost is $7000, then the direct manufacturing labor cost will be

a.

$27,000

b.

$13,000

c.

$130,000

d.

$29,500

Discuss
Answer: (b).$13,000
Q12.
If the direct service labor is $7000, the idle time wages are $2000 and the overtime premium is $950, then the total figure would be

a.

$5,850

b.

$5,950

c.

$9,950

d.

$10,050

Discuss
Answer: (c).$9,950
Q13.
The terms used in manufacturing cost systems are

a.

manufacturing costs

b.

prime costs

c.

conversion costs

d.

both b and c

Discuss
Answer: (d).both b and c
Q14.
The direct service labor is $5000, the idle time wages are $1000 and the overtime premium is $450, then the total figure would be

a.

$4,450

b.

$6,450

c.

$21,500

d.

$14,300

Discuss
Answer: (b).$6,450
Q15.
In an income statement, when costs become cost of sold goods and manufactured products are sold, such costs are

a.

inventoriable costs

b.

finished costs

c.

factory overhead costs

d.

manufacturing overhead costs

Discuss
Answer: (a).inventoriable costs
Q16.
The calculation of product cost, gathering information for planning and analyzing information for decisions making are the features of

a.

information accounting

b.

cost accounting

c.

analyzing accounts

d.

marketing costs

Discuss
Answer: (b).cost accounting
Q17.
The prime cost is $50000 and the direct manufacturing labor is $10000, then the direct material cost will be

a.

$40,000

b.

$60,000

c.

$52,000

d.

$20,000

Discuss
Answer: (a).$40,000
Q18.
An inventory, which consists of partially worked goods is called

a.

direct materials inventory

b.

work in process inventory

c.

finished goods inventory

d.

indirect material inventory

Discuss
Answer: (b).work in process inventory
Q19.
The balance sheet, in which all the costs of the product that must be considered as its assets, is said to be

a.

factory overhead costs

b.

manufacturing overhead costs

c.

Inventoriable costs

d.

finished costs

Discuss
Answer: (c).Inventoriable costs
Q20.
The direct material cost is $75000 and direct manufacturing labor is $20000, then prime cost would be

a.

$55,000

b.

$37,500

c.

$95,000

d.

$26,000

Discuss
Answer: (c).$95,000
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