Accounting Mcqs Practice Test

Question 1

In stand-alone revenue-allocation method, the type of weights available for this method are ____________?

Accepted Answer

D. all of above

Question 2

The costs, which consist of interdepartmental cost allocations plus cost of support department are classified as ___________?

Accepted Answer

A. complete reciprocal costs

Question 3

The cost of operating activity, facility or any cost object which usually shares by two or more than two users is classified as _________?

Accepted Answer

B. common cost

Question 4

The products, divisions and customers are the examples of ___________?

Accepted Answer

D. revenue object

Question 5

The method which ranks cost object incurred by individual users, in ranking order of more responsible users is classified as ___________?

Accepted Answer

D. incremental cost allocation method

Question 6

The method which determines weights of cost allocation by considering cost of each user, as separate entity is known as __________?

Accepted Answer

C. stand-alone cost allocation method

Question 7

Considering dual rate method, if employees work for 8500 budgeted hours at $120 per hour, and work for 9500 actual hours at $110 per hour, then the total cost would be ____________?

Accepted Answer

C. $2,065,000

Question 8

The method which allocates the cost of support department to only operating departments is called ___________?

Accepted Answer

B. direct method

Question 9

The second ranked product in incremental revenue allocation method is termed as __________?

Accepted Answer

B. First incremental product

Question 10

The approaches to allocate costs of support department do not include ___________?

Accepted Answer

D. both b and c

Question 11

The package which consists of two or more products to be sold for single price, but components of products in package have separate stand-alone price is called ___________?

Accepted Answer

C. bundled product

Question 12

The method of revenue allocation, which ranks products included in bundle according to predetermined criteria of management is known as _____________?

Accepted Answer

C. incremental revenue allocation method

Question 13

The department which directly adds value to product or service is known as __________?

Accepted Answer

D. both a and b

Question 14

The department which provides assisting services to internal departments is classified as __________?

Accepted Answer

B. support department

Question 15

The cost of new machine is considered as ______________?

Accepted Answer

A. relevant

Question 16

Buying of goods or services from suppliers or vendors of some other country instead of local supplier is classified as _________?

Accepted Answer

A. outsourcing

Question 17

In relevance concepts, the relevant revenues are also termed as ___________?

Accepted Answer

C. expected future revenues

Question 18

The costs that are unavoidable and remain unchanged no matter what done are classified as

Accepted Answer

A. sunk costs

Question 19

An amount of additional cost incurred for any particular activity is classified as ____________?

Accepted Answer

A. incremental cost

Question 20

The second step in decision making process is ___________?

Accepted Answer

D. obtaining information