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 manager who is responsible only for the revenues of the company can be categorized under the

a.

profit center

b.

investment center

c.

cost center

d.

revenue center

Discuss
Answer: (d).revenue center
Q42.
The system which measures the budget, action and plan of each responsibility center is known as

a.

budgeted accounting

b.

action accounting

c.

planned accounting

d.

responsibility accounting

Discuss
Answer: (d).responsibility accounting
Q43.
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
Q44.
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
Q45.
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
Q46.
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
Q47.
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
Q48.
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
Q49.
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
Q50.
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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