Basic Accounting Concepts(Cost Accounting ) Questions and Answers

Question 1. An arrangement of line of authority within the company is classified as
  1.    company structure
  2.    organization structure
  3.    line of authority
  4.    line of responsibility
Explanation:-
Answer: Option B. -> organization structure
Answer: (b).organization structure
Question 2. The variance used by managers to check whether the company has performed well and properly implemented the strategies is considered as
  1.    strategic implementation
  2.    proper implementation
  3.    performance evaluation
  4.    well evaluated
Explanation:-
Answer: Option C. -> performance evaluation
Answer: (c).performance evaluation
Question 3. The system which measures the budget, action and plan of each responsibility center is known as
  1.    budgeted accounting
  2.    action accounting
  3.    planned accounting
  4.    responsibility accounting
Explanation:-
Answer: Option D. -> responsibility accounting
Answer: (d).responsibility accounting
Question 4. The significant feature of Kaizen Budgeting is
  1.    employee suggestion
  2.    customer suggestion
  3.    cost suggestion
  4.    price suggestion
Explanation:-
Answer: Option A. -> employee suggestion
Answer: (a).employee suggestion
Question 5. The manager who is responsible only for the revenues of the company can be categorized under the
  1.    profit center
  2.    investment center
  3.    cost center
  4.    revenue center
Explanation:-
Answer: Option D. -> revenue center
Answer: (d).revenue center
Question 6. The costs which are considered as expenses in the accounting period are also known as
  1.    inventory costs
  2.    period costs
  3.    timed costs
  4.    labor overheads
Explanation:-
Answer: Option B. -> period costs
Answer: (b).period costs
Question 7. The direct manufacturing labor costs is $40000 and manufacturing overhead cost is $7000, then conversion cost would be
  1.    $47,000
  2.    $33,000
  3.    $57,000
  4.    $18,000
Explanation:-
Answer: Option A. -> $47,000
Answer: (a).$47,000
Question 8. If the direct material cost is $5500 and the prime cost is $25000, then the direct manufacturing labor would be
  1.    $19,500
  2.    $30,500
  3.    $45,500
  4.    $22,500
Explanation:-
Answer: Option A. -> $19,500
Answer: (a).$19,500
Question 9. The health care premium for workers and the pension costs are included in
  1.    payroll fringe costs
  2.    health costs
  3.    premium costs
  4.    workers costs
Explanation:-
Answer: Option A. -> payroll fringe costs
Answer: (a).payroll fringe costs
Question 10. All the costs, which are assigned to manufactured products for specific calculations are classified as
  1.    contracting costs
  2.    product cost
  3.    government costs
  4.    marketing costs
Explanation:-
Answer: Option B. -> product cost
Answer: (b).product cost
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