CVP Analysis Multiple Choice Questions (MCQ) PDF - 176

MCQ 876: If the selling price is $2000 and the contribution margin per unit is $800, then the contribution margin percentage would be

1. 40%
2. 25%
3. 60%
4. 75%

MCQ 877: If the sales budget variance for operating income is $58000 and the static budget amount is $15000, then flexible budget amount will be

1. $43,000
2. $73,000
3. $63,000
4. $53,000

MCQ 878: The costing system, which classify cost into cost categories in a way when an expense is incurred in the process is called

1. conversion expense costing system
2. inventory costing system
3. process costing system
4. job costing system

MCQ 879: The method, which allocates the cost of support department, to operating and support departments is known as

1. indirect method
2. direct method
3. step down method
4. reciprocal method

MCQ 880: In estimation of cost function, an example of independent variable is

1. level of activity
2. quantity stored
3. quantity manufactured
4. quality of product