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Fundamentals of Accounting – MCQs
14 questions. Click to practice.
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Correct options are highlighted when revealed.
1.
Given that the cost to produce one unit is $70 and the company manufactures 6,000 units, what is the total manufacturing expense?
$240,000
$320,000
$210,000
$420,000
2.
Given that the total production cost amounts to $40,000 and the total output is 500 units, what is the cost incurred per unit?
$80
$65
$7
$35
3.
Given that each unit costs $50 to produce and the company manufactures 5,000 units, what is the total manufacturing expense?
$220,000
$232,000
$250,000
$25,000
4.
What is the term for the usual span of activity within which a direct correlation between activity level and costs exists?
relevant range
irrelevant range
causal range
effective range
operational range
5.
Which type of companies purchase raw materials and transform them into final products for consumers?
manufacturing sector companies
retail sector companies
service industry companies
raw material suppliers
distribution sector companies
6.
Which of the following types of companies belong to the merchandising industry?
Companies involved in food manufacturing
Vehicle manufacturing firms
Businesses that handle product distribution
Marketing and promotional firms
7.
Which of the following types of companies belong to the manufacturing industry?
logistics firms
fabric production companies
sales outlets
online connectivity providers
8.
Given a total production expense of $60,000 and a total output of 3,000 units, what is the cost incurred for each individual unit?
$40 per unit
$20 per unit
$60 per unit
$80 per unit
None of the above
9.
Which of the following is classified as a service sector company?
Manufacturers of mobile phones
Investment fund firms
Broadcasting stations
Distribution merchants
10.
Which category do companies belong to if they primarily offer services rather than goods?
Businesses involved in production
Companies focused on retail and sales
Organizations within the service industry
Firms supplying raw materials
11.
Which type of companies buy completed products and then resell them to consumers in the market?
companies in the service industry
firms dealing with raw materials
organizations involved in production
businesses operating in the merchandising sector
none of the above
12.
What term describes inventory made up of raw materials that are yet to be utilized in the manufacturing process?
completed products inventory
materials not directly used inventory
raw materials inventory
inventory of goods being produced
13.
What is the term for the cost obtained by dividing the overall manufacturing expenses by the number of units produced?
cost per unit
aggregate cost
total overhead cost
comprehensive effective cost
14.
Which of the following is not classified as a type of inventory in cost accounting?
Raw materials inventory
Goods in production inventory
Completed products inventory
Indirect materials inventory
Fundamentals of Accounting – MCQs | PakQuizHub