Contribution Margin versus Gross Margin Quiz Questions and Answers PDF - 17

MCQ 81: Competitiveness can be best measured by

1. Gross margin
2. income margin
3. sales margin
4. cost margin

MCQ 82: The partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called

1. spoilage
2. rework
3. scrap
4. equivalence

MCQ 83: The gross margin is added to the cost of sold goods to calculate

1. revenues
2. selling price
3. unit price
4. bundle price

MCQ 84: If the contribution margin is $12000, the total variable cost is $7000, then the total revenue will be

1. $5,000
2. −$5000
3. $19,000
4. −$19000

MCQ 85: In process and job costing system, the normal spoilage cost is considered as

1. conversion costs
2. sunk costs
3. inventoriable costs
4. non inventoriable costs