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MCQs

Total Questions : 146 | Page 4 of 15 pages
Question 31. The pricing method used by services companies, such as home repair services, architectural firms and automobile repair services is known as
  1.    product life cycle method
  2.    life cycle budgeting method
  3.    life cycle costing method
  4.    time and material method
 Discuss Question
Answer: Option D. -> time and material method
Answer: (d).time and material method
Question 32. The total cost incur by customer to use, acquire, maintain and dispose service or product is classified as
  1.    budgeted life cycle
  2.    targeted life cycle
  3.    customer life cycle
  4.    operating life cycle
 Discuss Question
Answer: Option C. -> customer life cycle
Answer: (c).customer life cycle
Question 33. The practice by seller, about offering same product at different prices, to the different customers is known as
  1.    price incurrence
  2.    price discrimination
  3.    price targeting
  4.    price engineering
 Discuss Question
Answer: Option B. -> price discrimination
Answer: (b).price discrimination
Question 34. If total production is 25000 units and target annual operating income is $300000, then target operating income per unit would be
  1.    $15
  2.    $12
  3.    $16
  4.    $18
 Discuss Question
Answer: Option B. -> $12
Answer: (b).$12
Question 35. If cost is eliminated, then reducing the perceived usefulness that customers can obtain by using the market offering will come under
  1.    designed-in costs
  2.    locked-in costs
  3.    value added cost
  4.    non-value added cost
 Discuss Question
Answer: Option C. -> value added cost
Answer: (c).value added cost
Question 36. If the total revenue is $10000 and the total variable cost is $4000, then the contribution margin would be
  1.    $25,000
  2.    $14,000
  3.    $6,000
  4.    $8,400
 Discuss Question
Answer: Option B. -> $14,000
Answer: (b).$14,000
Question 37. If the variable cost per unit is $25 and the quantity of units sold is 5000, then the total variable cost would be
  1.    $155,000
  2.    $125,000
  3.    $135,000
  4.    $145,000
 Discuss Question
Answer: Option B. -> $125,000
Answer: (b).$125,000
Question 38. The total revenues is subtracted from total variable costs to calculate
  1.    revenue margin
  2.    variable margin
  3.    contribution margin
  4.    divisor margin
 Discuss Question
Answer: Option C. -> contribution margin
Answer: (c).contribution margin
Question 39. If break-even number of units are 120 units and the fixed cost is $62000, then the contribution margin per unit will be
  1.    $74,400
  2.    $7,440,000
  3.    $516.67
  4.    $51,667
 Discuss Question
Answer: Option C. -> $516.67
Answer: (c).$516.67
Question 40. If the contribution margin per unit is $1000 and the contribution margin percentage is 25%, then the selling price would be
  1.    $2,500
  2.    $4,000
  3.    $3,800
  4.    $3,800
 Discuss Question
Answer: Option B. -> $4,000
Answer: (b).$4,000

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