Breakeven Point and Target Income Multiple Choice Questions (MCQ) PDF - 204

MCQ 1016: If the fixed cost is $30000 and the contribution margin per unit is $600 per unit, then the breakeven in units will be

1. 50 units
2. 60 units
3. 70 units
4. 65 units

MCQ 1017: The relationship between cost and cost driver is economically plausible if the goodness of fit

1. has meaning
2. has no meaning
3. has index values
4. has no index values

MCQ 1018: An overtime is considered in cost accounting as

1. indirect costs
2. overhead costs
3. premium costs
4. both a and b

MCQ 1019: The working capital cash outflow, cash outflow to buy machine and cash inflow from machine are the examples of

1. cash flow from operations
2. terminal disposal of investment
3. net initial investment
4. average return on investment

MCQ 1020: The situation in which two or more independent variables are highly correlated is known as

1. price linearity
2. cost linearity
3. division linearity
4. multi-collinearity