Management Accounting MCQ Questions and Solutions with Explanations | Management

Gross margin percentage = Gross margin ÷ Total revenue × 100
= $6000 ÷ $26000 = 23.08%

Fixed cost, and contribution margin percentage for bundle are divided to calculate breakeven revenues. Break-even analysis entails the calculation and examination of the margin of safety for an entity based on the revenues collected and associated costs. Analyzing different price levels relating to various levels of demand a business uses break-even analysis to determine what level of sales are necessary to cover the company's total fixed costs.

Contribution margin = Revenue - Variable cost
= $11000 - $6000 = $5,000.

Contribution margin percentage = Contribution margin ÷ Revenue × 100
= $4000 ÷ $16000 × 100 = 25.00%.

Quantity or number of units of different products that together make up total sales of company is called sales mix. Sales mix is the relative proportion or ratio of a business's products that are sold. Sales mix is important because a company's products usually have different degrees of profitability. Sales mix also applies to service businesses since the services provided will likely have different levels of profitability.

In cost accounting, financial way of charging price for product above cost, of acquiring or producing goods is known as 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.

Variable costs = Revenue - Contribution margin
= $9000 - $3000 = $6,000.

In monetary terms, an expected value of outcome is classified as expected monetary value. Expected monetary value (EMV) is a risk management technique to help quantify and compare risks in many aspects of the project.

All choices for decision that are easily available to managers are classified as actions. Action, act, deed mean something done. Action applies especially to the doing, act to the result of the doing.

In accounting, possibility of deviation of actual amount from an expected amount is classified as uncertainty. Uncertainty refers to epistemic situations involving imperfect or unknown information. It applies to predictions of future events, to physical measurements that are already made, or to the unknown.