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MCQs

Total Questions : 50 | Page 2 of 5 pages
Question 11. If the contribution margin of bundle is $4000 and the revenue of the bundle is $16000, then the contribution margin percentage for bundle will be
  1.    10%
  2.    15%
  3.    25%
  4.    35%
 Discuss Question
Answer: Option C. -> 25%
Answer: (c).25%
Question 12. The quantity or number of units of different products that together make up total sales of the company is called
  1.    sales mix
  2.    product mix
  3.    unit mix
  4.    quantity mix
 Discuss Question
Answer: Option A. -> sales mix
Answer: (a).sales mix
Question 13. In monetary terms, an expected value of the outcome is classified as
  1.    expected value
  2.    expected decision value
  3.    expected outcome value
  4.    expected monetary value
 Discuss Question
Answer: Option D. -> expected monetary value
Answer: (d).expected monetary value
Question 14. In cost accounting, the financial way of charging price for product above the cost, of acquiring or producing the goods is known as
  1.    sales margin
  2.    cost margin
  3.    Gross margin
  4.    income margin
 Discuss Question
Answer: Option C. -> Gross margin
Answer: (c).Gross margin
Question 15. If the contribution margin is $3000 and the revenues are $9000, then all the variable costs will be
  1.    $12,000
  2.    $6,000
  3.    −$6000
  4.    −$12000
 Discuss Question
Answer: Option B. -> $6,000
Answer: (b).$6,000
Question 16. If the gross margin is $9000 and the cost of goods sold is $8000 then the revenue will be
  1.    $1,000
  2.    −$1000
  3.    $17,000
  4.    −$17000
 Discuss Question
Answer: Option C. -> $17,000
Answer: (c).$17,000
Question 17. If the fixed cost is $10000, the target operating income is $8000 and the contribution margin per unit is $900, then required units to be sold will be
  1.    45 units
  2.    30 units
  3.    20 units
  4.    52 units
 Discuss Question
Answer: Option C. -> 20 units
Answer: (c).20 units
Question 18. The economic results that are predicted for possible combinations of events are classified as
  1.    margin
  2.    distribution
  3.    collection
  4.    outcome
 Discuss Question
Answer: Option D. -> outcome
Answer: (d).outcome
Question 19. If the margin of safety is $25000 and the budgeted revenue is $45000, then the margin of safety in percentage will be
  1.    55.56%
  2.    25.50%
  3.    28%
  4.    45.00%
 Discuss Question
Answer: Option A. -> 55.56%
Answer: (a).55.56%
Question 20. The formula to calculate the contribution margin is
  1.    revenue - all variable cost
  2.    revenue + all variable cost
  3.    cost + revenue
  4.    revenue - breakeven units
 Discuss Question
Answer: Option A. -> revenue - all variable cost
Answer: (a).revenue - all variable cost

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