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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-7 section-3

Each section contains 100 MCQs on Management Accounting .
61
If selling price is $2000 and contribution margin per unit is $800, then contribution margin percentage would be
Discuss
Answer & Solution
Answer: Option A
No explanation is given for this question. Let's Discuss on Board
62
Contribution margin per unit is divided by selling price to calculate
Discuss
Answer & Solution
Answer: Option B
Solution:
Contribution margin per unit is divided by selling price to calculate contribution margin percentage. The contribution margin ratio is the difference between a company's sales and variable expenses, expressed as a percentage. The total margin generated by an entity represents the total earnings available to pay for fixed expenses and generate a profit.
63
If fixed cost is $40000 and contribution margin per unit is $800 per unit, then breakeven of units will be
Discuss
Answer & Solution
Answer: Option C
Solution:
Breakeven of units = Fixed cost ÷ Contribution margin per unit
= $40000 ÷ $800 = 50 units.
64
Selling price is multiplied to quantity of sold units to calculate
Discuss
Answer & Solution
Answer: Option A
Solution:
Selling price is multiplied to quantity of sold units to calculate revenues. Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income.
65
In a relevant range, variable cost per unit, selling price and total fixed costs are
Discuss
Answer & Solution
Answer: Option D
Solution:
In a relevant range, variable cost per unit, selling price and total fixed costs are known and constant.
66
If fixed cost is $30000 and contribution margin per unit is $600 per unit, then breakeven in units will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Breakeven in units = Fixed cost ÷ Contribution margin per unit
= $30000 ÷ $600 = 50 units.
67
If contribution margin per unit is $500 and contribution margin percentage is 25%, then selling price will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Selling price = Contribution margin per unit ÷ Contribution margin percentage
= $500 ÷ 25% = $2,000.
68
If contribution margin percentage is 20% and selling price is $4000, then contribution margin per unit will be
Discuss
Answer & Solution
Answer: Option D
Solution:
Contribution margin per unit = Selling price × Contribution margin percentage
= $4000 × 20% = $800.
69
If cost of goods sold is $8000, gross margin is $5000 then revenue will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Revenue = Cost of goods sold + Gross margin
= $8000 + $5000 = $13,000.
70
Competitiveness can be best measured by
Discuss
Answer & Solution
Answer: Option A
Solution:
Competitiveness can be best measured by gross margin. Gross margin is a company's net sales revenue minus its cost of goods sold (COGS). In other words, it is the sales revenue a company retains after incurring the direct costs associated with producing the goods it sells, and the services it provides.