Test Your Knowledge Every Week!


Accounting Quiz

Accountants are lifelong students. The weekly quizzes are open to everyone in the wonderful field of accounting, business and the study of accounting. Good luck!

This week's quiz brought to you by:
Gloria Stuart, Instructor, Georgia Southern University



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1 - The amount of revenue remaining after subtracting variable costs is called:
Gross Profit
Net Income
Contribution Margin
Cost of Goods Sold

2 - "A company sells a product for $55 and has variable costs of $45. If fixed costs are $550,000, how many units will the company have to sell in order to breakeven?"
"10,000 units"
"12,222 units"
"55,000 units"
"15,000 units"

3 - Which of the following would be considered a period cost when incurred?
Depreciation on the factory building
Wood used in the manufacture of furniture
Salary of the security guard for the factory
Shipping costs incurred to get the product to the customer

4 - The difference between actual sales and breakeven sales is called:
Margin of Safety
Operating Leverage
Contribution Margin
Profit Margin

5 - "If a company’s manufacturing overhead account has a credit balance at the end of a period, this means:"
No overhead has been applied during the year
Actual overhead costs were less than overhead costs applied to work in process
Actual overhead costs were greater than overhead costs applied to work in process
Actual overhead costs were equal than overhead costs applied to work in process

6 - Costs that vary in total but remain the same per unit are called:
Fixed costs
Mixed costs
Variable costs
Product costs

7 - The process used to identify financial data that changes under alternative courses of action is called:
Responsibility Accounting
Incremental Analysis
Budgetary Control
Process Costing

8 - The primary difference between variable costing and absorption costing is the treatment of:
Variable manufacturing overhead costs
Direct labor
Fixed manufacturing overhead costs
Direct materials

9 - Which of the following is an element of just-in-time processing?
Total quality control system
Dependable suppliers
Multi-skilled workforce
All of the above

10 - Conversion costs are:
Direct materials and direct labor
Direct labor and indirect labor
Manufacturing overhead and direct materials
Direct labor and manufacturing overhead

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