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Total Questions : 146 | Page 3 of 15 pages
Question 21. The product costing technique in which markup component is added into cost base, to set a target price is known as
  1.    market based approach
  2.    cost incurrence pricing
  3.    cost plus pricing
  4.    locked-in cost pricing
 Discuss Question
Answer: Option C. -> cost plus pricing
Answer: (c).cost plus pricing
Question 22. If the invested capital is $150000 and target rate of return on investment is 16%, then the targeted annual operating income would be
  1.    $27,000
  2.    $26,000
  3.    $24,000
  4.    $25,000
 Discuss Question
Answer: Option C. -> $24,000
Answer: (c).$24,000
Question 23. In cost-plus pricing, the 'plus' refers to a component named as
  1.    off shore cost
  2.    markup
  3.    sunk cost
  4.    outsource cost
 Discuss Question
Answer: Option B. -> markup
Answer: (b).markup
Question 24. The span time from initial research and development of product till support and customer service, if not offered for that particular product will be called
  1.    product life cycle
  2.    life cycle budgeting
  3.    life cycle costing
  4.    target costing
 Discuss Question
Answer: Option A. -> product life cycle
Answer: (a).product life cycle
Question 25. When the fixed cost is divided into contribution margin per unit, it gives
  1.    fixed output
  2.    variable output
  3.    breakeven number of units
  4.    total number of units
 Discuss Question
Answer: Option C. -> breakeven number of units
Answer: (c).breakeven number of units
Question 26. The contribution margin per unit is $500 per unit and the breakeven per unit is $35, then the fixed cost would be
  1.    $13,500
  2.    $14,280
  3.    $18,500
  4.    $17,500
 Discuss Question
Answer: Option D. -> $17,500
Answer: (d).$17,500
Question 27. The contribution per unit is $1200 and the number of units sold is $80, then the contribution margin would be
  1.    $9,650
  2.    $96,000
  3.    $15
  4.    $9,600
 Discuss Question
Answer: Option B. -> $96,000
Answer: (b).$96,000
Question 28. If the contribution per unit is $900 and the number of units sold is $70, then the contribution margin will be
  1.    $97,000
  2.    $83,000
  3.    $63,000
  4.    $12,860
 Discuss Question
Answer: Option C. -> $63,000
Answer: (c).$63,000
Question 29. If the selling price is $20 and the number of units sold are 800, then the revenue is equal to
  1.    $16,000
  2.    $40,000
  3.    $25,000
  4.    $35,700
 Discuss Question
Answer: Option A. -> $16,000
Answer: (a).$16,000
Question 30. In the process of examining, occurred changes in total revenues, operating income and costs is known as
  1.    revenue analysis
  2.    costs analysis
  3.    operating income analysis
  4.    cost volume profit analysis
 Discuss Question
Answer: Option D. -> cost volume profit analysis
Answer: (d).cost volume profit analysis

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