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.
The relationship between change in activity and change in total costs is considered as

a.

fixed relationship

b.

cause and effect relationship

c.

ineffective relationship

d.

variable relationship

Discuss
Answer: (b).cause and effect relationship
Q42.
The direct cost assignment for specific cost object is classified as

a.

cost object line cost

b.

cost tracing

c.

cost object indirect cost

d.

cost object staff cost

Discuss
Answer: (b).cost tracing
Q43.
In accounting, the cost incurred in past or in historical financial statements is classified as

a.

actual cost

b.

budgeted cost

c.

past cost

d.

incurred cost

Discuss
Answer: (a).actual cost
Q44.
According to accounting system the collection of cost data, in an organized way is classified as

a.

system accumulation

b.

accumulated data

c.

cost accumulation

d.

organized accumulation

Discuss
Answer: (c).cost accumulation
Q45.
The difference between the budgeted amounts and the actual results is classified as

a.

standard deviation

b.

variances

c.

mean average

d.

weighted average

Discuss
Answer: (b).variances
Q46.
A manager who is responsible for only the cost of the company belongs to

a.

cost center

b.

revenue center

c.

profit center

d.

investment center

Discuss
Answer: (a).cost center
Q47.
A manager, who is responsible for the both cost and revenues belong to the department of

a.

cost center

b.

revenue center

c.

profit center

d.

investment center

Discuss
Answer: (c).profit center
Q48.
The larger number of manager subordinates and the higher level manager are termed as

a.

activity subordinates

b.

broader responsibility center

c.

broader subordinates

d.

activity ordinates

Discuss
Answer: (b).broader responsibility center
Q49.
An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as

a.

coordinating the company effort

b.

action plan

c.

action accountability

d.

project accountability

Discuss
Answer: (a).coordinating the company effort
Q50.
The manager who is responsible for investments of the company, its costs and revenues is known as

a.

profit center

b.

investment center

c.

cost center

d.

revenue center

Discuss
Answer: (b).investment center
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