MCQ Test 1 on Accounting Concepts

MCQ The labor which is related to the manufacturing of the product is classified as

1. direct manufacturing labor costs

2. indirect manufacturing labor costs
3. work in process cost
4. finished costs

MCQ The direct material costs are added into direct manufacturing costs to calculate

1. discuss costs
2. prime costs
3. resale cost
4. merchandise costs

MCQ The direct manufacturing labor costs is added to manufacturing overhead cost to calculate

1. transaction costs
2. conversion costs
3. resale costs
4. merchandise costs

MCQ In cost terms, the direct manufacturing labor cost is included in

1. manufacturing costs
2. prime costs
3. conversion costs
4. Both B and C

MCQ The conversion cost is $2000 and the manufacturing overhead cost is $7000 then the
direct manufacturing labor cost is

1. $27,000
2. $13,000
3. $130,000
4. $29,500

B
MCQ The direct service labor is $7000, the idle time wages are $2000 and the overtime
premium is $950 then the total figure would be

1. $5,850
2. $5,950
3. $9,950
4. $10,050

MCQ The two terms in manufacturing cost systems are

1. manufacturing costs
2. prime costs
3. conversion costs
4. Both B and C

MCQ The direct service labor is $5000, the idle time wages are $1000 and the overtime
premium is $450 then the total figure would be

1. $4,450
2. $6,450
3. $21,500
4. $14,300

MCQ In income statement, the costs that become cost of goods sold when the manufactured
products are sold are classified as

1. inventoriable costs
2. finished costs
3. factory overhead costs
4. manufacturing overhead costs

MCQ The calculation of product cost, gathering information for planning and analyzing
information for decisions are features of

1. information accounting
2. cost accounting
3. analyzing accounts
4. marketing costs

B
MCQ The prime cost is $50000 and the direct manufacturing labor is $10000 then the direct
material cost is

1. $40,000
2. $60,000
3. $52,000
4. $20,000

MCQ The inventory which consists of partially worked goods or work in progress is called

1. direct materials inventory

2. work in process inventory
3. finished goods inventory
4. indirect material inventory

MCQ In balance sheet, all the costs of the product that must be considers as assets in it and it is
said to be

1. factory overhead costs

2. manufacturing overhead costs
3. Inventoriable costs
4. finished costs

MCQ The direct material cost is $75000 and direct manufacturing labor is $20000 then prime
cost is

1. $55,000
2. $37,500
3. $95,000
4. $26,000

MCQ In the income statement of manufacturing companies, the period cost consists of

1. inventory costs
2. product costs
3. non-manufacturing costs
4. manufacturing costs

C
MCQ The acquisition cost of raw material to be used in the manufacturing and become
component of cost object is classified as

1. direct material costs

2. indirect material costs
3. direct labor costs
4. indirect labor costs

MCQ The wages and other benefits provided to assembly line workers and operators of machine
is classified as

1. work in process cost

2. finished costs
3. direct manufacturing labor costs
4. indirect manufacturing labor costs

MCQ The conversion cost is subtracted from manufacturing overhead cost to calculate

1. manufacturing labor costs

2. direct labor costs
3. direct manufacturing labor costs
4. indirect manufacturing labor costs

MCQ The labor which works as forklift truck, plant guards and the rework labor is classified as

1. prime overhead
2. conversion overhead
3. factory overhead
4. manufacturing overhead

MCQ The inventory of the final goods that are not yet sold is called

1. finished goods inventory

2. indirect material inventory
3. direct materials inventory
4. work in process inventory

A
MCQ The costs which are considered as expenses in the accounting period are classified as

1. inventory costs
2. period costs
3. timed costs
4. labor overheads

MCQ The health care premium for workers and the pension costs are included in

1. payroll fringe costs

2. health costs
3. premium costs
4. workers costs

MCQ All the costs assigned to manufactured products for specific calculations are classified as

1. contracting costs
2. product cost
3. government costs
4. marketing costs

MCQ The direct material cost is $5500 and the prime cost is $25000 then the direct
manufacturing labor is

1. $19,500
2. $30,500
3. $45,500
4. $22,500

MCQ The direct manufacturing labor costs is $40000 and manufacturing overhead cost is $7000
then conversion cost is

1. $47,000
2. $33,000
3. $57,000
4. $18,000

A
MCQ The direct material cost is $85000 and direct manufacturing labor is $25000 then prime
cost is

1. $13,500
2. $55,600
3. $60,000
4. $110,000

MCQ In costing of project, the wages paid to workers for the unproductive work at the time of
material shortages is classified as

1. indirect wages
2. health wages
3. idle time wages
4. shortage time wages

MCQ The conversion cost is subtracted from direct manufacturing labor cost to calculate

1. direct overheads
2. overhead costs
3. factory overhead
4. manufacturing overhead cost

MCQ The inward delivery charges and custom duties are classified as

1. direct labor costs

2. indirect labor costs
3. direct material costs
4. indirect material costs

MCQ The supplies, plant maintenance, plant rent, plant insurance and cleaning labor are
considered as

1. labor costs
2. factory overhead costs
3. finished costs
4. manufacturing costs

B
MCQ The conversion cost is $25000 and direct manufacturing labor cost is $17000 then the
manufacturing overhead cost is

1. $14,700
2. $68,000
3. $8,000
4. $42,000

MCQ For the companies in service sector, the cost which is not considerable is

1. Inventoriable costs
2. finished costs
3. factory overhead costs
4. manufacturing overhead costs

MCQ In cost accounting, the overtime is considered as

1. indirect costs
2. overhead costs
3. premium costs
4. both a and b

MCQ In the income statement of merchandising costs, the period cost includes all costs not
related to

1. cost of resale goods

2. cost of manufacturing goods
3. timed resale of goods
4. cost of purchased goods

MCQ The wages paid to workers of the factory are classified as

1. workers premium
2. overtime premium
3. factory premium
4. wage premium