Correct Answer:
B. Changes in direct proportion to changes in activity level
Variable costs vary in total with the level of activity.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Total variable cost:
Related MCQs
Detection risk is the risk that:
A.
Internal control will fail to detect a misstatement
B.
The auditor's procedures will fail to detect a material misstatement
C.
The entity will go bankrupt
D.
The auditor will be sued by a shareholder
Correct answer is:
B. The auditor's procedures will fail to detect a material misstatement
Do you agree with this answer?
Which of the following is a test of controls?
A.
Confirming receivable balances with customers
B.
Recalculating depreciation expense
C.
Inspecting purchase orders for evidence of authorization signatures
D.
Counting inventory at year end
Correct answer is:
C. Inspecting purchase orders for evidence of authorization signatures
Do you agree with this answer?
Zero-based budgeting (ZBB) requires that:
A.
Last year's budget be increased by inflation
B.
Every expenditure be justified from zero in each budget cycle
C.
Budgets be zero in the first year
D.
No deficit be allowed
Correct answer is:
B. Every expenditure be justified from zero in each budget cycle
Do you agree with this answer?
Stock audit in a government department is intended to:
A.
Verify the physical existence and proper record of stores and stock
B.
Count cash in the treasury
C.
Check payroll only
D.
Verify tax assessments
Correct answer is:
A. Verify the physical existence and proper record of stores and stock
Do you agree with this answer?
Expenditure charged upon the Federal Consolidated Fund (Article 81) is:
A.
Voted separately by the Senate
B.
Free of any audit
C.
Paid only from provincial funds
D.
Not submitted to a vote in the National Assembly, though it may be discussed
Correct answer is:
D. Not submitted to a vote in the National Assembly, though it may be discussed
Do you agree with this answer?
Accounts receivable are Rs. 100,000 and annual credit sales are Rs. 730,000. Average collection period (365-day year) is:
A.
73 days
B.
50 days
C.
30 days
D.
7.3 days
Correct answer is:
B. 50 days
Do you agree with this answer?
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