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 6 of 8

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Q51.
If the direct material cost is $85000 and direct manufacturing labor is $25000, then prime cost would be

a.

$13,500

b.

$55,600

c.

$60,000

d.

$110,000

Discuss
Answer: (d).$110,000
Q52.
In costing of project, the wages paid to workers for the unproductive work at the time of material shortage is termed as

a.

indirect wages

b.

health wages

c.

idle time wages

d.

shortage time wages

Discuss
Answer: (c).idle time wages
Q53.
The conversion cost is subtracted from direct manufacturing labor cost to calculate the

a.

direct overheads

b.

overhead costs

c.

factory overhead

d.

manufacturing overhead cost

Discuss
Answer: (d).manufacturing overhead cost
Q54.
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
Q55.
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
Q56.
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
Q57.
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
Q58.
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
Q59.
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
Q60.
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
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