(A) Contribution margin
(B) Gross margin
(C) Operating income
(D) Fixed costs
Category: Accounting Mcqs
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Marginal costing is also known as:
(A) Indirect costing
(B) Direct costing
(C) Variable costing
(D) Both (b) and (c)
The break-even point in units is calculated using__.
(A) Fixed expenses and the contribution margin ratio
(B) Variable expenses and the contribution margin ratio
(C) Fixed expenses and the unit contribution margin
(D) Variable expenses and the unit contribution margin
The break-even point is the point where:
(A) Total sales revenue equals total expenses (variable and fixed)
(B) Total contribution margin equals total fixed expenses
(C) Total sales revenue equals to variable expenses only
(D) Both a & b
The contribution margin ratio is calculated by using which one of the given formula?
(A) (Sales – Fixed Expenses)/Sales
(B) (Sales – Variable Expenses)/Sales
(C) (Sales – Total Expenses)/Sales
(D) None of the given options
The margin of safety can be defined as:
(A) The excess of budgeted or actual sales over budgeted or actual variable expenses
(B) The excess of budgeted or actual sales over budgeted or actual fixed expenses
(C) The excess of budgeted sales over the break-even volume of sales
(D) The excess of budgeted net income over actual net income
Which of the following ratios expressed that how many times the inventory is turning over towards the cost of goods sold?
(A) Net profit ratio
(B) Gross profit ratio
(C) Inventory turnover ratio
(D) Inventory holding period
While preparing the Cost of Goods Sold and Income Statement, the over applied FOH is?
(A) Add back, subtracted
(B) Subtracted, add back
(C) Add back, add back
(D) Subtracted, subtracted