1. Overhead cost is the total of ____________.
✅ A. all indirect costs.
Option A : all indirect costs. Option B : all direct costs. Option C : indirect and direct costs. Option D : all specific costs Correct Answer : all indirect costs. Read more
Accounting MCQs
Accounting MCQs Test Preparation | Latest 2025 Quiz FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, ETEA MCQs Test Questions.
2. Warehouse rent is a part of _________?
✅ C. distribution cost.
Option A : prime cost. Option B : factory cost. Option C : distribution cost. Option D : production cost Correct Answer : distribution cost. Read more
3. Tender is an_____________?
✅ C. estimation of selling price
Option A : estimation of profit. Option B : estimation of cost. Option C : estimation of selling price Option D : estimation of units. Correct Answer : estimation of selling price Read more
4. The process of paying off debt over time in regular installment of interest & principal sufficient to repay the loan in fully by its maturity date.
✅ A. Amortization
Option A : Amortization Option B : Loan Payment Option C : Liability Option D : Securitization Correct Answer : Amortization Read more
5. Direct cost incurred can be identified with_______________?
✅ B. Each unit of output
Option A : Each Department Option B : Each unit of output Option C : Each Month Option D : Each Executive Correct Answer : Each unit of output Read more
6. A worker has a time rate of 15/hr. He makes 720 units of component (standard time : 5 minutes/ unit) in a week of 48 hours. His total wages including Rowan bonus for the week is
✅ D. 864
Option A : 792 Option B : 820 Option C : 840 Option D : 864 Correct Answer : 864 Read more
7. One of the most important tools in cost planning is__________?
✅ C. Budget
Option A : Direct cost Option B : Cost Sheet Option C : Budget Option D : Marginal Costing. Correct Answer : Budget Read more
8. A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of ` 1,100, number of units sold 22,000. What shall be the BEP 9 in units) if raw material price is reduced by 2%?
✅ A. 18,387
Option A : 18,387 Option B : 18,560 Option C : 18,750 Option D : 19,000 Correct Answer : 18,387 Read more
9. Find the cost of goods sold if goods are sold for 2,000 at 25% profit on cost?
✅ B. 1,500
Option A : 1,600 Option B : 1,500 Option C : 1,000 Option D : 1,800 Correct Answer : 1,500 Read more
10. When production is equal to sales, which of the following is TRUE?
✅ A. No change occurs to inventories for either use absorption costing or variable costing methods
Option A : No change occurs to inventories for either use absorption costing or variable costing methods Option B : The use of absorption costing produces a higher net income than the use of variable costing Option C : The use of absorption costing produces a lower net income than the use of variable costing Option D : The use… Read more
11. An average cost is also known as________?
✅ B. Unit cost
Option A : Variable cost Option B : Unit cost Option C : Total cost Option D : Fixed cost Correct Answer : Unit cost Read more
12. Costs that change in response to alternative courses of action are called___________?
✅ B. Differential costs
Option A : Relevant costs Option B : Differential costs Option C : Target costs Option D : Sunk costs Correct Answer : Differential costs Read more
13. The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?
✅ C. Commercial cost
Option A : Direct cost Option B : Variable cost Option C : Commercial cost Option D : Conversion cost Correct Answer : Commercial cost Read more
14. Consider the following data for a company during the month of June 2012 Budgeted hours 4,000 Standard hours for actual production 4,400 Maximum possible hours in the budget period 4,800 Actual hours 3,800 The activity ratio of the company during the month is
✅ A. 111%
Option A : 111% Option B : 120% Option C : 95% Option D : 117% Correct Answer : 111% Read more
15. Which of the following bases is not appropriate for apportionment of Transport departments cost ?
✅ B. Crane value
Option A : Crane hours Option B : Crane value Option C : Truck Mileage Option D : Truck value Correct Answer : Crane value Read more
16. The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :
✅ B. Sunk cost
Option A : Uncontrollable cost Option B : Sunk cost Option C : Avoidable cost Option D : Opportunity cost Correct Answer : Sunk cost Read more
17. Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?
✅ A. 5,80,000
Option A : 5,80,000 Option B : 5,50,000 Option C : 5,00,000 Option D : 5,75,000 Read More Details about this Mcq Correct Answer : 5,80,000 Read more
18. If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.
✅ A. 0.65
Option A : 0.65 Option B : 0.35 Option C : 1.5 Option D : 5.29 Correct Answer : 0.65 Read more
19. A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be
✅ C. 24
Option A : 37.5 Option B : 38.25 Option C : 24 Option D : 35 Correct Answer : 24 Read more
20. Consider the following data pertaining to the production of a company for a particular month :
✅ A. Opening stock of raw material 11,570 Closing stock of raw material 10,380 Purchase of raw material during the month 1,28,450 Total manufacturing cost charged to product 3,39,165 Factory overheads are applied at the rate of 45% of direct labour cost. The amount of factory overheads applied to production is 65,025
Option A : Opening stock of raw material 11,570 Closing stock of raw material 10,380 Purchase of raw material during the month 1,28,450 Total manufacturing cost charged to product 3,39,165 Factory overheads are applied at the rate of 45% of direct labour cost. The amount of factory overheads applied to production is 65,025 Option B : 94,287 Option C :… Read more