Correct Answer:
C. Total cost of goods available divided by total units available
The average is recalculated after each purchase or at period end.
November 13, 2026 · Accounting and Finance MCQs, Financial Accounting MCQs
Under the weighted average cost method, the cost per unit is calculated as:
Related MCQs
Operating income is Rs. 200,000, invested assets are Rs. 1,000,000 and the required rate of return is 12%. Residual income is:
A.
Rs. 120,000
B.
Rs. 80,000
C.
Rs. 200,000
D.
Rs. 320,000
Correct answer is:
B. Rs. 80,000
Do you agree with this answer?
Under the cash basis of accounting, transactions are recognized when:
A.
They are earned or incurred
B.
Cash is received or paid
C.
They are budgeted
D.
They are audited
Correct answer is:
B. Cash is received or paid
Do you agree with this answer?
A long association of the same audit partner with a client mainly creates which threat?
A.
Self-review threat
B.
Advocacy threat
C.
Liquidity threat
D.
Familiarity threat
Correct answer is:
D. Familiarity threat
Do you agree with this answer?
Total variable cost:
A.
Remains constant regardless of activity
B.
Changes in direct proportion to changes in activity level
C.
Decreases as activity increases
D.
Is always zero
Correct answer is:
B. Changes in direct proportion to changes in activity level
Do you agree with this answer?
Actual hours are 90, standard hours allowed are 100 and the standard rate is Rs. 20. The labor efficiency variance is:
A.
Rs. 200 favorable
B.
Rs. 200 adverse
C.
Rs. 1,800 favorable
D.
Rs. 2,000 adverse
Correct answer is:
A. Rs. 200 favorable
Do you agree with this answer?
When shares are issued at a price above their par value, the excess is credited to:
A.
Retained earnings
B.
Share premium
C.
Revenue
D.
Loan account
Correct answer is:
B. Share premium
Do you agree with this answer?
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