Quiz: Accounting Principle Trivia Questions
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Welcome to the Accounting principle trivia questions. Every person who is studying and want to become a practicing accountant. Then it is expected to know the basic accounting principles by heart as they serve as a guideline on how they should perform their job. Do give it a try and see just how well you understand them in practice. All the best! ; &nbs p; &nb sp; &n bsp;
- 1.The main purpose of cost accounting is to
- A.
A. maximise profits
- B.
B. help in inventory valuation
- C.
C. provide information to management for decision-making
- D.
D. aid in the fixation of selling prices.
- 2.One of the most important tools in cost planning is
- A.
A. direct cost
- B.
B. budget
- C.
C. cost sheet
- D.
D. marginal costing.
- 3.The purpose of financial accounting is to provide information for —
- A.
A. fixing prices
- B.
B. cost control
- C.
C. locating factory leading to wastages and losses
- D.
D. assessing the profitability and financial position of the firm.
- 4.Fixed cost per unit increases when —
- A.
A. variable cost per unit increases
- B.
B. variable cost per unit decreases
- C.
C. production volume increases
- D.
D. production volume decreases.
- 5.Variable cost per unit
- A.
A. varies when output varies
- B.
B. remains constant
- C.
C. increases when output increases
- D.
D. decreases when output decreases.
- 6.Increase in total variable cost is due to
- A.
A. increase in fixed cost
- B.
B. increase in sales
- C.
C. increase in production.
- 7.An example of variable cost is
- A.
A. property taxes
- B.
B. interest on capital
- C.
C. direct material cost
- D.
D. depreciation of machinery.
- 8.An example of fixed cost is
- A.
A. direct material cost
- B.
B. works manager’s salary
- C.
C. depreciation of machinery
- D.
D. chargeable expenses.
- 9.Cost accounting concepts include all of the following except.
- A.
A. planning
- B.
B. controlling
- C.
C. profit sharing
- D.
D. product costing.
- 10.The three major elements of product costs are all but
- A.
A. direct materials
- B.
B. factory overhead
- C.
C. direct labour
- D.
D. indirect labour.
- 11.Cost of goods produced includes
- A.
A. production cost and finished goods inventory
- B.
B. production cost and work-in-progress
- C.
C. production cost, work-in-progress and finished goods inventory.
- 12.Cost of goods sold includes
- A.
A. cost of production and work-in-progress
- B.
B. cost of production and finished goods inventory
- C.
C. cost of production, work-in-progress and finished goods inventory.
- 13.An overstatement of work-in-progress at the end of a period will
- A.
A. overstate cost of goods produced
- B.
B. understate current assets
- C.
C. understate gross profit
- D.
D. overstate net profit
- 14.Conversion cost is equal to the total of
- A.
A. material cost and direct wages
- B.
B. material cost and indirect wagesc.
- C.
C. direct wages and factory overhead
- D.
D. material cost and factory overhead
- 15.Multiple costing method is used in
- A.
A. oil refinery
- B.
B. car manufacturing company
- C.
C. sugar mill
- D.
D. multi-product company.
- 16.Toy manufacturing company should use
- A.
A. unit costing
- B.
B. job costing
- C.
C. batch costing
- D.
D. multiple costing
- 17.Electricity generating company should employ
- A.
A. unit costing
- B.
B. process costing
- C.
C. operation costing
- D.
D. operating costing.
- 18.Job costing is used in
- A.
A. paper mills
- B.
B. chemical worksc.
- C.
C. printing press
- D.
D. textile mill.
- 19.Output costing is employed in
- A.
A. mining quarries
- B.
B. steel production
- C.
C. brick kilns
- D.
D. all of these
- 20.Contract costing is used in
- A.
A. ship-building
- B.
B. aeroplane industries
- C.
C. automobile industries.
- D.
D. None of these.
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