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 3 of 8

Discover more Topics under Cost Accounting

Q21.
The costs which are considered as expenses in the accounting period are also known as

a.

inventory costs

b.

period costs

c.

timed costs

d.

labor overheads

Discuss
Answer: (b).period costs
Q22.
The health care premium for workers and the pension costs are included in

a.

payroll fringe costs

b.

health costs

c.

premium costs

d.

workers costs

Discuss
Answer: (a).payroll fringe costs
Q23.
All the 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

Discuss
Answer: (b).product cost
Q24.
If the direct material cost is $5500 and the prime cost is $25000, then the direct manufacturing labor would be

a.

$19,500

b.

$30,500

c.

$45,500

d.

$22,500

Discuss
Answer: (a).$19,500
Q25.
The direct manufacturing labor costs is $40000 and manufacturing overhead cost is $7000, then conversion cost would be

a.

$47,000

b.

$33,000

c.

$57,000

d.

$18,000

Discuss
Answer: (a).$47,000
Q26.
If the direct material cost is $85000 and direct manufacturing labor is $25000, then prime cost would be

a.

$13,500

b.

$55,600

c.

$60,000

d.

$110,000

Discuss
Answer: (d).$110,000
Q27.
In costing of project, the wages paid to workers for the unproductive work at the time of material shortage is termed as

a.

indirect wages

b.

health wages

c.

idle time wages

d.

shortage time wages

Discuss
Answer: (c).idle time wages
Q28.
The conversion cost is subtracted from direct manufacturing labor cost to calculate the

a.

direct overheads

b.

overhead costs

c.

factory overhead

d.

manufacturing overhead cost

Discuss
Answer: (d).manufacturing overhead cost
Q29.
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
Q30.
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
Page 3 of 8