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 7 of 8

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Q61.
The labor which works as forklift truck, plant guards and the rework labor is classified as

a.

prime overhead

b.

conversion overhead

c.

factory overhead

d.

manufacturing overhead

Discuss
Answer: (d).manufacturing overhead
Q62.
The inventory of the final goods that are not yet sold is called

a.

finished goods inventory

b.

indirect material inventory

c.

direct materials inventory

d.

work in process inventory

Discuss
Answer: (a).finished goods inventory
Q63.
The costs which are considered as expenses in the accounting period are also known as

a.

inventory costs

b.

period costs

c.

timed costs

d.

labor overheads

Discuss
Answer: (b).period costs
Q64.
The health care premium for workers and the pension costs are included in

a.

payroll fringe costs

b.

health costs

c.

premium costs

d.

workers costs

Discuss
Answer: (a).payroll fringe costs
Q65.
Companies that are part of an industry of 'service providers' are

a.

manufacturing sector companies

b.

merchandising sector companies

c.

service sector companies

d.

raw material companies

Discuss
Answer: (c).service sector companies
Q66.
The normal activity range in which there is relationship between activity and costs is classified as

a.

relevant range

b.

irrelevant range

c.

cause range

d.

effective range

Discuss
Answer: (a).relevant range
Q67.
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
Q68.
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
Q69.
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
Q70.
All the costs, which are assigned to manufactured products for specific calculations are classified as

a.

contracting costs

b.

product cost

c.

government costs

d.

marketing costs

Discuss
Answer: (b).product cost
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