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Management Accounting MCQ Questions and Solutions with Explanations | Management

Management Accounting MCQ Questions and answers with easy and logical explanations. Management provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Management MCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management department exam. Page-4 section-3

Each section contains 100 MCQs on Management Accounting .
31
If selling price is $5000, contribution margin per unit is $1000, then contribution margin percentage will be
Discuss
Answer & Solution
Answer: Option B
Solution:
Contribution margin percentage = Contribution margin per unit ÷ selling price × 100
= $1000 ÷ $5000 × 100 = 20.00%
32
If revenue is $15000, total variable cost is $5000 and fixed cost $2000 then operating income will be
Discuss
Answer & Solution
Answer: Option B
Solution:
Operating income = Total revenue - Variable cost - Fixed cost
= $15000 - $5000 - $2000 = $8,000.
33
If total revenue is $9000, total variable cost is $2000, then contribution margin will be
Discuss
Answer & Solution
Answer: Option D
Solution:
Contribution margin = Total revenue - Variable cost
= $9000 - $2000 = $7,000.
34
If fixed cost is $30000, contribution margin percentage is 40%, then breakeven revenue will be
Discuss
Answer & Solution
Answer: Option B
Solution:
Breakeven revenue = Fixed cost × Contribution margin percentage
= $30000 × 40% = $75,000.
35
Variable cost per unit is multiplied to quantity of sold units to calculate
Discuss
Answer & Solution
Answer: Option B
Solution:
Variable cost per unit is multiplied to quantity of sold units to calculate variable cost. A variable cost is a corporate expense that changes in proportion to production output. Variable costs increase or decrease depending on a company's production volume; they rise as production increases and fall as production decreases.
36
Contribution margin per unit is multiplied to number of units sold to calculate
Discuss
Answer & Solution
Answer: Option C
Solution:
Contribution margin per unit is multiplied to number of units sold to calculate contribution margin. Contribution margin is a product's price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. The total contribution margin generated by an entity represents the total earnings available to pay for fixed expenses and to generate a profit.
37
If variable cost is $50000 and fixed cost is $30000, then operating income would be
Discuss
Answer & Solution
Answer: Option D
Solution:
Operating income = Variable cost - Fixed cost
= $50000 - $30000 = $20,000.
38
Contribution margin per unit is $500 per unit and breakeven per unit is $35, then fixed cost would be
Discuss
Answer & Solution
Answer: Option D
Solution:
Fixed cost = Contribution margin per unit × Breakeven per unit
= $500 × $35 = $17,500.
39
Contribution per unit is $1200 and number of units sold is $80, then contribution margin would be
Discuss
Answer & Solution
Answer: Option B
Solution:
Contribution margin = Contribution per unit × Number of units sold
= $1200 × $80 = $96,000.
40
In process of examining, occurred changes in total revenues, operating income and costs is known as
Discuss
Answer & Solution
Answer: Option D
Solution:
In process of examining, occurred changes in total revenues, operating income and costs is known as cost volume profit analysis. Cost-volume-profit (CVP) analysis is a method of cost accounting that looks at the impact that varying levels of costs and volume have on operating profit.