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 2 of 8

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Q11.
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
Q12.
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
Q13.
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
Q14.
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
Q15.
The period cost, which consists the income statement of manufacturing companies belong to

a.

inventory costs

b.

product costs

c.

non-manufacturing costs

d.

manufacturing costs

Discuss
Answer: (c).non-manufacturing costs
Q16.
An acquisition cost of raw material is to be used in the 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

Discuss
Answer: (a).direct material costs
Q17.
The wages and other benefits, provided to assembly line workers and operators of machine are classified under the

a.

work in process costs

b.

finished costs

c.

direct manufacturing labor costs

d.

indirect manufacturing labor costs

Discuss
Answer: (d).indirect manufacturing labor costs
Q18.
The conversion cost is subtracted from manufacturing overhead cost is to calculate the

a.

manufacturing labor costs

b.

direct labor costs

c.

direct manufacturing labor costs

d.

indirect manufacturing labor costs

Discuss
Answer: (c).direct manufacturing labor costs
Q19.
The labor which works as forklift truck, plant guards and the rework labor is classified as

a.

prime overhead

b.

conversion overhead

c.

factory overhead

d.

manufacturing overhead

Discuss
Answer: (d).manufacturing overhead
Q20.
The inventory of the final goods that are not yet sold is called

a.

finished goods inventory

b.

indirect material inventory

c.

direct materials inventory

d.

work in process inventory

Discuss
Answer: (a).finished goods inventory
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