Take your time to read instructions before taking this test.

There are 40 questions which you are to answer in 15 minutes that gives you roughly 30 seconds per question.

If you can get at least 60%, you can be rest assured that you’ll ace ACC 206 exam

In a normal exam you will be asked between 40 – 60 questions but I only arranged 40 questions

Note

Do not be in a hurry to answer the questions
Do not waste time on a question you don’t know
Move as fast as possible and starting with questions that don’t have calculation first to save time
Always crosscheck
Don’t be in a hurry to submit, you are not in a competition
Don’t be scared. Getting an A is easy
Don’t be over confident, you can end up a D, E or F. Calm your blood, no be only you sabi book
Please do well to use our comment box incase there’s a message you want to pass to us

70 – 100 A

60 – 69 B

50 – 59 C

45 – 49 D

40 – 44 E

0 – 39 F

I wish you success

Please do well to use our comment box incase there’s a message you want to pass to us

Want to stay updated with exam info, materials, and more practice resources?

Join the UNDERGRAGRA WhatsApp Channel now!

Here’s the link: https://whatsapp.com/channel/0029VakX28dFi8xdORrhjI34

Telegram Channel

T.me/ugchannel

Kindly join us on all our social media platform using this link ⏩ https://t.co/Tk9d5HFJXG

Join Our General 200 Level Whatsapp Group

https://chat.whatsapp.com/CR3L5APyRwoJw9MEjO9o1m

Thank you!.

Keep pushing, stay focused, and good luck on your exams. You’ve got this!

I remain your favorite education blogger

❤️ Undergragra

ACC 206

1 / 40

1. Marginal costing considers only

A. Financial accounting allocations

B. Fixed production costs

C. Total costs including overhead

D. Variable production costs

2 / 40

2. One potential drawback of incremental budgeting is its tendency to:

A. Discourage the use of fixed budgets

B. Reinforce inefficient spending patterns

C. Ignore past performance

D. Encourage zero-based analysis

3 / 40

3. Closing inventory under marginal costing is valued at

A. Full production cost

B. Variable cost per unit

C. Selling price per unit

D. Average market price

4 / 40

4. Fixed costs under marginal costing are regarded as

A. Variable expenses

B. Inventory valuation bases

C. Period costs

D. Direct costs per unit

5 / 40

5. An incremental budget is developed by making changes to:

A. Last year’s budget

B. Competitors’ budgets

C. Industry norms

D. New strategic plans

6 / 40

6. Relevant costs are identified based on their

A. Future, differential, and cash-based features

B. Certainty and predetermined values

C. Impact on past financial decisions

D. Historical nature and fixed value

7 / 40

7. A flexible budget is particularly beneficial in environments that are:

A. Dynamic and variable

B. Under government control

C. Predictable and repetitive

D. Highly stable

8 / 40

8. An incremental budget is developed by making changes to:

A. Industry norms

B. Competitors’ budgets

C. Last year’s budget

D. New strategic plans

9 / 40

9. Direct labor budgets focus on:

A. Inventory costs

B. Production-related labor costs

C. Distribution expenses

D. Advertising and promotions

10 / 40

10. In make-or-buy decisions, internal production is preferred when

A. Fixed cost exceeds break-even point

B. Total variable cost is below supplier’s price

C. Overheads are higher than marginal cost

D. Supplier offers a lower price

11 / 40

11. Absorption costing treats fixed overheads as

A. Future sunk cost

B. Part of product cost

C. Period expenses only

D. Irrelevant costs

12 / 40

12. Budgeted income statements are prepared to project:

A. Asset depreciation

B. Sales volume

C. Only variable costs

D. Profit or loss for a period

13 / 40

13. Marginal costing provides valuable support in

A. Strategic mergers

B. Preparing capital budgets

C. Filing annual tax returns

D. Short-term decision making

14 / 40

14. Contribution margin equals

A. Sales minus fixed cost

B. Gross margin minus cost of

C. Gross margin minus cost of

D. Sales minus variable cost

15 / 40

15. An advantage of a fixed budget is its:

A. Flexibility in volatile markets

B. Alignment with dynamic goals

C. Simplicity and ease of use

D. Emphasis on innovation

16 / 40

16. Cash budgets help organizations to manage:

A. Liquidity and cash flow

B. Hiring plans

C. Sales growth rates

D. Equipment depreciation

17 / 40

17. Absorption costing includes

A. Fixed and variable production costs

B. Only direct labor and materials

C. Only variable production costs

D. Excludes any indirect costs

18 / 40

18. The process of analyzing reasons for differences between actual and budgeted amounts is known as:

A. Variance analysis

B. Performance indexing

C. Audit review

D. Compliance check

19 / 40

19. Absorption costing income statement begins with

A. Gross profit

B. Operating margin

C. Net profit

D. Contribution margin

20 / 40

20. A production budget determines:

A. How much marketing is required

B. Quantities of goods to be manufactured

C. The cash required for payroll

D. The level of administrative costs

21 / 40

21. Marginal cost reflects the

A. Fixed cost allocation per unit

B. Cost incurred for additional units produced

C. Total overhead cost of production

D. Total direct and indirect costs combined

22 / 40

22. A zero-based budgeting system requires justification for:

A. Each revenue stream

B. All new capital assets

C. Every single expense

D. Direct labor cost alone

23 / 40

23. A master budget includes:

A. Performance-based incentives

B. Operating, capital, and financial budgets

C. Marketing-only expenses

D. Performance-based incentives

24 / 40

24. Budgetary control ensures alignment between actual performance and:

A. Estimated marketing trends

B. Budgeted goals and objectives

C. Sales team projections

D. Industry benchmarks

25 / 40

25. The break-even formula derived from marginal costing is

A. Fixed cost – Profit

B. Fixed cost / (Selling price – Variable cost)

C. Sales – Fixed cost = Break-even

D. Sales × Cost per unit

26 / 40

26. Performance evaluation under fixed budgeting compares actual results to:

A. Flexible spending guidelines

B. Budget targets set at the beginning

C. Industry averages

D. Competitor benchmarks

27 / 40

27. A key advantage of marginal costing is its

A. High dependency on fixed costs

B. Simplified overhead treatment

C. Confusion with period costs

D. Complex cost allocation method

28 / 40

28. A major advantage of marginal costing is

A. Simplified treatment of fixed overheads

B. Complex overhead recovery

C. Elimination of variable cost analysis

D. Overstated cost of sales

29 / 40

29. A capital expenditure budget would most likely include planning for:

A. Utility bills

B. Equipment purchases

C. Office stationery

D. Employee salaries

30 / 40

30. Pricing decisions under marginal costing benefit from

A. Analyzing cost-volume-profit relationships

B. Ignoring contribution margin

C. Emphasizing total absorption cost

D. Random cost classifications

31 / 40

31. The purpose of including contingency plans in a budget is to:

A. Mitigate unexpected financial risks

B. Minimize fixed expenses

C. Maximize departmental budgets

D. Add unnecessary reserves

32 / 40

32. Closing stock valuation under marginal costing includes

A. Administrative overheads

B. Only fixed costs

C. All cost elements

D. Only variable costs

33 / 40

33. Contribution margin is derived by subtracting

A. Variable cost from sales

B. Overheads from net profit

C. Fixed cost from gross profit

D. Total cost from selling price

34 / 40

34. Sunk costs are best described as

A. Marginal costs considered for pricing

B. Historical costs with no relevance to decisions

C. Future expenses yet to be incurred

D. Opportunity costs related to investment

35 / 40

35. Budgeting enables organizations to:

A. Avoid paying taxes

B. Outsource key operations

C. Allocate resources efficiently

D. Eliminate all financial risks

36 / 40

36. A sales budget helps organizations forecast:

A. Number of employees needed

B. Expected revenue from product sales

C. Overhead expenses

D. Cash flow for asset acquisition

37 / 40

37. The equation “Sales - Variable Cost = Contribution” helps in determining

A. Profit margin after tax

B. Profit by subtracting fixed cost from contribution

C. Cash flow budget

D. Break-even units only

38 / 40

38. Performance monitoring in budgetary control involves comparing actual results to:

A. Budgeted figures

B. Industry projections

C. Government statistics

D. Last quarter’s reports

39 / 40

39. A key feature of zero-based budgeting is the requirement to:

A. Justify each item from a zero base

B. Base the budget on last year’s actuals

C. Increase all expenses annually

D. Avoid including indirect costs

40 / 40

40. The term used to describe costs already incurred and no longer relevant is

A. Imputed cost

B. Sunk cost

C. Opportunity cost

D. Replacement cost

Your score is

The average score is 65%

Related posts:

Office

Stay In Touch