Accounting MCQs

Welcome to Articles Space, your ultimate destination for an extensive collection of Accounting MCQs. Delve into a wide range of topics within the realm of Accounting, encompassing fundamental concepts, accounting theories, financial accounting, managerial accounting, and more. Our thoughtfully curated questions hold significant value, serving as indispensable preparation material for various examinations.

Whether you’re gearing up for tests conducted by FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, STS, ETEA, or any other esteemed testing agency in Pakistan, our Accounting MCQs are tailored to enhance your understanding and ensure success in the field of Accounting.

1. What is the primary focus of cost accounting?
A. Financial Reporting
B. Cost Calculation
C. Marketing Strategies
D. Human Resource Management

2. Which costing method assigns costs to specific products or services?
A. Variable Costing
B. Absorption Costing
C. Activity-Based Costing
D. Job Order Costing

3. What is the purpose of cost classification in cost accounting?
A. Enhancing Productivity
B. Forecasting Stock Market Trends
C. Facilitating Decision-Making
D. Employee Training

4. In cost accounting, what does the term “Direct Costs” refer to?
A. Indirect Production Costs
B. Variable Overhead Costs
C. Selling and Distribution Costs
D. Costs Directly Attributable to a Product or Service

5. What is the formula for calculating the contribution margin ratio?
A. Net Profit / Sales
B. Variable Costs / Fixed Costs
C. (Sales – Variable Costs) / Sales
D. Fixed Costs / Sales

6. What is the significance of the break-even point in cost accounting?
A. Determining Market Share
B. Setting Advertising Budgets
C. Identifying the Level of Sales Necessary to Cover Costs
D. Employee Motivation Strategies

7. What is the purpose of variance analysis in cost accounting?
A. Evaluating Employee Performance
B. Analyzing the Difference Between Actual and Budgeted Costs
C. Determining Tax Liabilities
D. Pricing Strategy Formulation

8. What is the role of a cost accountant in a manufacturing company?
A. Managing Human Resources
B. Conducting Market Research
C. Estimating and Controlling Costs of Production
D. Legal Compliance and Ethics Oversight

9. How does activity-based costing differ from traditional costing methods?
A. Ignores Overhead Costs
B. Allocates Overhead Costs Based on Activities
C. Focuses Only on Variable Costs
D. Ignores Direct Labor Costs

10. What is the significance of the cost of goods sold (COGS) in cost accounting?
A. Measuring Profitability
B. Calculating the Direct Costs Associated with Producing Goods
C. Assessing Employee Satisfaction
D. Predicting Market Trends