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!

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Basic Accounting Concepts MCQs | Page 6 of 8

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Q51.
The companies in the industry that purchase the finished goods, and further sell the products into the market are classified as

a.

service sector companies

b.

raw material companies

c.

manufacturing sector companies

d.

merchandising sector companies

Discuss
Answer: (d).merchandising sector companies
Q52.
If the cost per unit is $50 and the total number of units manufactured in company are 5000, then the total manufacturing cost will be

a.

$220,000

b.

$232,000

c.

$250,000

d.

$25,000

Discuss
Answer: (c).$250,000
Q53.
An inventory which consists of stock waiting to be used In the process of manufacturing is known as

a.

finished goods inventory

b.

indirect material inventory

c.

direct materials inventory

d.

work in process inventory

Discuss
Answer: (c).direct materials inventory
Q54.
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
Q55.
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
Q56.
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
Q57.
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
Q58.
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
Q59.
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
Q60.
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
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