Accounting Practice MCQ Page 1

Multiple Choice questions for Accounting in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 924   Direct wages should always be classified
  1. as variable costs
  2. as fixed costs
  3. as semi-fixed
  4. according to their actual behavior
Question: 928   The First in First Out (FIFO) materials pricing system charges issues at
  1. the price of the most recent batch in stock
  2. the price of the first component used in the period
  3. the average price of goods in stock
  4. the price of the oldest batch in stock
Question: 933   The Last in First Out (LIFO) system will
  1. value stocks at current values
  2. understate product in times of rising prices
  3. tend to produce realistic product costs
  4. make cost comparisons between jobs easier
Question: 940   When Activity Based Costing is used it is probable the
  1. all products will cost more
  2. high volume product will tend to be costed lower
  3. direct costs will be a smaller proportion of total costs
  4. more costs will be charghed to products which are produced for stock
Question: 942   The use of backflush accounting means that
  1. conversion costs cannot be carried forward in stock values
  2. stocks cannot occur
  3. raw material costs will be reduced
  4. costs are attributed to stock and cost of sales when the finished goods are made
Question: 943   Unit costs are extensively used in the public sector. This is because
  1. thy are a rough and ready guide to efficiency
  2. thy are a good measure of the quality of service provided
  3. they allow for regional sifferences
  4. they enable public sector organisations to stay within the set cash limits
Question: 944   Which of the following firms are most likely to use process costing
  1. a car manufacturer
  2. a sugar refinery
  3. a builder
  4. a departmental store
Question: 946   Activity Based Costing absorbs overheads into products
  1. by treating most of them as long-term variable costs
  2. by ignoring the volume of production
  3. according to the usage of support overheads
  4. by only producing on demand
Question: 948   Significant Digit Codes are
  1. where some of the digits are part of the description
  2. only used for raw materials
  3. to enable a code to be self-checking
  4. a means of combing expenditure and location codes
Question: 952   Check digit variation is
  1. the process of checking invoices for correct calculations
  2. a method of making code numbers self checking
  3. to enable codes to be self-indexing
  4. the encoding of invoices with internal codes
Question: 956   Which of the following firms would be most likely to use job costing
  1. a paint manufacturer
  2. a sugar refinery
  3. a firm of architects
  4. a car manufacturers