Accounting Mcqs Practice Test

Question 1

The difference between actual quantity use and input quantity for output is multiplied with budgeted price to calculate ___________?

Accepted Answer

B. efficiency variance

Question 2

The budgeted input quantity is added in to efficiency variance to calculate _____________?

Accepted Answer

A. actual input quantity

Question 3

If an efficiency variance is 200 units and the actual input quantity is 750 units, then the budgeted input quantity will be ___________?

Accepted Answer

C. 550 units

Question 4

If a company uses large quantity of input than the budgeted quantity for output level, then the company is known to be __________?

Accepted Answer

C. company is inefficient

Question 5

An actual rate paid to labor is greater than the budgeted rate, it means that the ____________?

Accepted Answer

B. variance is unfavorable

Question 6

The process in which earned revenue is related to specific revenue object, which can cannot trace it in cost effective way is known as __________?

Accepted Answer

A. revenue allocation

Question 7

The methods used to allocate costs of reciprocal support departments include ____________?

Accepted Answer

D. all of above

Question 8

In incremental cost allocation method, the cost object user who is ranked second in ranking order is known as ____________?

Accepted Answer

A. First incremental user

Question 9

The method, which allocates the cost of support department, to operating and support departments is known as ___________?

Accepted Answer

C. step down method

Question 10

The method, which allocates cost of support department for operating departments by recognizing all the mutual services provided is classified as ___________?

Accepted Answer

D. reciprocal method

Question 11

According to incremental method, the party which receives the highest ranking in allocation of common cost is classified as ____________?

Accepted Answer

C. primary party

Question 12

If the employees of division A work for 8000 hours for $90 per hour, then the rate must be paid in division B in accordance of single rate method will be ___________?

Accepted Answer

A. $90 per hour

Question 13

Support department cost allocation method which makes no difference between variable and fixed costs is classified as ___________?

Accepted Answer

C. single rate cost allocation method

Question 14

A particular term for which specific revenue measurement is required is known as __________?

Accepted Answer

B. revenue object

Question 15

The method, which uses specific information on products as weights to allocate bundled revenues for each product in bundle is classified as ___________?

Accepted Answer

B. stand-alone revenue allocation method

Question 16

The third ranked product in incremental revenue-allocation method is known as _________?

Accepted Answer

D. Third incremental product

Question 17

The cost object user, who is ranked first in incremental cost allocation method is known as _________?

Accepted Answer

B. primary user

Question 18

In incremental cost allocation method, the cost object user who is ranked third in ranking order is classified as ____________?

Accepted Answer

D. second incremental user

Question 19

The first ranked product, in incremental revenue allocation method, is classified as ___________?

Accepted Answer

A. primary product

Question 20

The method which divides the support department cost into two dimensions such as fixed and variable cost pool is classified as ___________?

Accepted Answer

B. dual-rate cost-allocation method