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 use of variables to signal whether the strategies are effective or ineffective is classified as

a.

evaluating strategy

b.

performing strategy

c.

warned strategy

d.

weighted strategy

Discuss
Answer: (a).evaluating strategy
Q42.
The segment of subunit of company, whose manager is responsible for specific set of instructions and activities perform is classified as

a.

subunit center

b.

instruction center

c.

responsibility center

d.

activity segment

Discuss
Answer: (c).responsibility center
Q43.
Which of the following is an example of revenue center?

a.

sales department

b.

investing center

c.

marketing department

d.

segment department

Discuss
Answer: (a).sales department
Q44.
The variance, if used to alert managers before time of the problem is called

a.

varied warning

b.

times warning

c.

managers warning

d.

early warning

Discuss
Answer: (d).early warning
Q45.
An arrangement of line of authority within the company is classified as

a.

company structure

b.

organization structure

c.

line of authority

d.

line of responsibility

Discuss
Answer: (b).organization structure
Q46.
The variance used by managers to check whether the company has performed well and properly implemented the strategies is considered as

a.

strategic implementation

b.

proper implementation

c.

performance evaluation

d.

well evaluated

Discuss
Answer: (c).performance evaluation
Q47.
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
Q48.
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
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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