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Accounting MCQs / Q&A

The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :

Accounting MCQs / Q&A /
The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :

A. Uncontrollable cost
B. Sunk cost
C. Avoidable cost
D. Opportunity cost

The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of : Read More »

Accounting MCQs / Q&A

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

Accounting MCQs / Q&A /
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%
B. 120%
C. 95%
D. 117%

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 Read More »

Accounting MCQs / Q&A

The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?

Accounting MCQs / Q&A /
The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?

A. Direct cost
B. Variable cost
C. Commercial cost
D. Conversion cost

The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________? Read More »

Accounting MCQs / Q&A

When production is equal to sales, which of the following is TRUE?

Accounting MCQs / Q&A /
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
B. The use of absorption costing produces a higher net income than the use of variable costing
C. The use of absorption costing produces a lower net income than the use of variable costing
D. The use of absorption costing causes inventory value to increase more than they would though the use of variable costing

When production is equal to sales, which of the following is TRUE? Read More »

Accounting MCQs / Q&A