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 5 of 8

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Q41.
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
Q42.
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
Q43.
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
Q44.
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
Q45.
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
Q46.
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
Q47.
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
Q48.
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
Q49.
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
Q50.
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
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