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MCQs

Total Questions : 50 | Page 4 of 5 pages
Question 31. An effect of fixed cost to change in operating income is classified as
  1.    uncertain margin
  2.    certain margin
  3.    operating margin
  4.    operating leverage
 Discuss Question
Answer: Option D. -> operating leverage
Answer: (d).operating leverage
Question 32. If the gross margin is $6000 and the total revenue is $26000, then the gross margin percentage will be
  1.    23.08%
  2.    24.08%
  3.    25.08%
  4.    26.08%
 Discuss Question
Answer: Option A. -> 23.08%
Answer: (a).23.08%
Question 33. The target operating income is multiplied to tax rate and then subtracted from target operating income to calculate
  1.    target net cost
  2.    target net income
  3.    target net gain
  4.    target net loss
 Discuss Question
Answer: Option B. -> target net income
Answer: (b).target net income
Question 34. The revenue is $11000 and all the variable cost is $6000, then the contribution margin would be
  1.    −$17000
  2.    $17,000
  3.    $5,000
  4.    −$5000
 Discuss Question
Answer: Option C. -> $5,000
Answer: (c).$5,000
Question 35. The fixed cost, and the contribution margin percentage for the bundle are divided to calculate
  1.    breakeven costs
  2.    breakeven revenues
  3.    breakeven units
  4.    breakeven sales
 Discuss Question
Answer: Option B. -> breakeven revenues
Answer: (b).breakeven revenues
Question 36. All the choices for decision that are easily available to managers are classified as
  1.    outcome
  2.    actions
  3.    events
  4.    distribution
 Discuss Question
Answer: Option B. -> actions
Answer: (b).actions
Question 37. If the breakeven revenue is $220000 and the revenue per bundle is $10000, then the number of bundles to be sold to breakeven will be
  1.    32 bundle
  2.    22 bundle
  3.    42 bundle
  4.    38 bundle
 Discuss Question
Answer: Option B. -> 22 bundle
Answer: (b).22 bundle
Question 38. In accounting, the possibility of deviation of actual amount from an expected amount is classified as
  1.    contribution
  2.    certainty
  3.    uncertainty
  4.    margin
 Discuss Question
Answer: Option C. -> uncertainty
Answer: (c).uncertainty
Question 39. The gross margin is $7000 and the revenues are $16000, then the cost of goods sold would be
  1.    $23,000
  2.    −$23000
  3.    −$9000
  4.    $9,000
 Discuss Question
Answer: Option D. -> $9,000
Answer: (d).$9,000
Question 40. If the sales quantity is 7000 units and the breakeven quantity is 1500 units, then the margin of safety would be
  1.    4500 units
  2.    5500 units
  3.    8500 units
  4.    9500 units
 Discuss Question
Answer: Option B. -> 5500 units
Answer: (b).5500 units

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