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 cost which remains unchanged, in proportion to level the total volume of production is classified as

a.

total cost

b.

infeasible cost

c.

fixed cost

d.

variable cost

Discuss
Answer: (c).fixed cost
Q42.
In accounting, the cost which is predicted to be incurred or future cost is known as

a.

past cost

b.

incurred cost

c.

actual cost

d.

budgeted cost

Discuss
Answer: (d).budgeted cost
Q43.
The cost which is related to specific cost object and cannot be economically traceable is classified as

a.

line cost

b.

staff cost

c.

direct cost

d.

indirect cost

Discuss
Answer: (d).indirect cost
Q44.
The process of assigning the indirect costs to any specific cost object is known as

a.

economic cost

b.

cost tracing

c.

cost allocation

d.

non-economic costs

Discuss
Answer: (c).cost allocation
Q45.
In accounting, the resources sacrifice for achieving or fulfill specific objective is known as

a.

source cost

b.

sacrifice cost

c.

treated cost

d.

cost

Discuss
Answer: (d).cost
Q46.
In production, the variables such as level of activity or volume of company activity are known as

a.

cost drivers

b.

timed drivers

c.

variable drivers

d.

fixed drivers

Discuss
Answer: (a).cost drivers
Q47.
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
Q48.
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
Q49.
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
Q50.
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
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