ExamVeda
Login
Home

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-5 section-3

Each section contains 100 MCQs on Management Accounting .
41
If contribution per unit is $900 and number of units sold is $70, then contribution margin will be
Discuss
Answer & Solution
Answer: Option C
Solution:
Contribution margin = Contribution per unit × Number of units sold
= $900 × $70 = $63,000.
42
If selling price is $20 and number of units sold are 800, then revenue is equal to
Discuss
Answer & Solution
Answer: Option A
Solution:
Revenue = Units sold × Selling price
= 800 × $20 = $16,000.
43
If total revenue is $10000 and total variable cost is $4000, then contribution margin would be
Discuss
Answer & Solution
Answer: Option B
Solution:
Contribution margin = Total revenue + Total variable cost
= $10000 + $4000 = $14,000.
44
Total revenues is subtracted from total variable costs to calculate
Discuss
Answer & Solution
Answer: Option C
Solution:
Total revenues is subtracted from total variable costs 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.
45
If contribution margin per unit is $1000 and contribution margin percentage is 25%, then selling price would be
Discuss
Answer & Solution
Answer: Option B
Solution:
Selling price = Contribution margin ÷ Contribution margin percentage
= $1000 ÷ 25% = $4,000.
46
If break-even number of units are 120 units and fixed cost is $62000, then contribution margin per unit will be
Discuss
Answer & Solution
Answer: Option C
Solution:
Contribution margin per unit = Fixed cost ÷ Break-even number of units
= $62000 ÷ 120 = $516.67.
47
If variable cost per unit is $25 and quantity of units sold is 5000, then total variable cost would be
Discuss
Answer & Solution
Answer: Option B
Solution:
Total variable cost = Quantity of units sold × Variable cost per unit
= 5000 × $25 = $125,000.
48
Difference between variable cost per unit and selling price can be classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Difference between variable cost per unit and selling price can be classified as contribution margin per unit. Contribution margin per unit is the net amount that each additional unit sold contributes towards a company’s fixed costs and profit.
49
If contribution margin per unit is $40 per unit and selling price is $200, then contribution margin percentage would be
Discuss
Answer & Solution
Answer: Option A
Solution:
Contribution margin percentage = Contribution margin per unit÷ Selling price × 100
= $40 ÷ $200 × 100 = 20.00%.
50
If contribution margin per unit is $800 and selling price is $20000, then contribution margin percentage will be
Discuss
Answer & Solution
Answer: Option C
Solution:
Contribution margin percentage = Contribution margin per unit÷ Selling price × 100
= $800 ÷ $20000 × 100 = 4.00%.