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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-1 section-4

Each section contains 100 MCQs on Management Accounting .
1
Formula to calculate contribution margin is
Discuss
Answer & Solution
Answer: Option A
Solution:
Formula to calculate contribution margin is revenue - all variable cost. Also known as dollar contribution per unit, the measure indicates how a particular product contributes to the overall profit of the company.
2
If margin of safety is $25000 and budgeted revenue is $45000, then margin of safety in percentage will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Margin of safety in percentage = Margin of safety ÷ Budgeted revenue × 100
= $25000 ÷ $45000 × 100 = 55.56%.
3
Fixed cost is $25000 and breakeven revenue is $95000, then contribution margin will be
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
4
If breakeven revenue is $360000 and revenue per bundle is $12000, then number of bundles to be sold to breakeven can be
Discuss
Answer & Solution
Answer: Option D
Solution:
Number of bundles to be sold to breakeven = Breakeven revenue ÷ Revenue per bundle
= $360000 ÷ $12000 = 30 bundles.
5
If fixed cost is $15000 and breakeven revenue is $45000 then contribution margin will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Contribution margin = Fixed cost ÷ Breakeven revenue × 100
= $15000 ÷ $45000 × 100 = 33.34%.
6
If contribution margin is $72000 and operating income is $12000, then degree of operating leverage would be
Discuss
Answer & Solution
Answer: Option C
Solution:
Degree of operating leverage = Contribution margin ÷ Operating income
= $72000 ÷ $12000 = 6.
7
Gross margin is divided by revenues to calculate the
Discuss
Answer & Solution
Answer: Option B
Solution:
Gross margin is divided by revenues to calculate the Gross margin percentage.
8
If fixed cost is $65000 and contribution margin percentage for bundle is 0.575, then breakeven revenue will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Breakeven revenue = Fixed cost ÷ Contribution margin percentage for bundle
= $65000 ÷ 0.575 = $113,043.48.
9
Gross margin is added into cost of sold goods is to calculate the
Discuss
Answer & Solution
Answer: Option A
Solution:
Gross margin is added into cost of sold goods is to calculate the 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. Sales Revenue formula. Revenue is also known as sales on the income statement.
10
Amount of money by which total revenues exceed breakeven revenues is classified as
Discuss
Answer & Solution
Answer: Option A
Solution:
Amount of money by which total revenues exceed breakeven revenues is classified as margin of safety. Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value.