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    El - lool
    The document contains 9 multiple choice questions about cost accounting concepts like break-even point, variable costs, fixed costs, and contribution margin ratio. It provides the question and the correct answer key for each question, covering topics such as the formula for break-even point being total fixed expenses divided by contribution margin per unit, variable costs varying directly with changes in activity level while fixed costs remain the same on a per unit basis but total as activity changes, and the contribution margin ratio formula being contribution margin divided by sales.

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    Untitled

    Uploaded by

    El - lool
    9 views1 page
    The document contains 9 multiple choice questions about cost accounting concepts like break-even point, variable costs, fixed costs, and contribution margin ratio. It provides the question and the correct answer key for each question, covering topics such as the formula for break-even point being total fixed expenses divided by contribution margin per unit, variable costs varying directly with changes in activity level while fixed costs remain the same on a per unit basis but total as activity changes, and the contribution margin ratio formula being contribution margin divided by sales.

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    The document contains 9 multiple choice questions about cost accounting concepts like break-even point, variable costs, fixed costs, and contribution margin ratio. It provides the question and the correct answer key for each question, covering topics such as the formula for break-even point being total fixed expenses divided by contribution margin per unit, variable costs varying directly with changes in activity level while fixed costs remain the same on a per unit basis but total as activity changes, and the contribution margin ratio formula being contribution margin divided by sales.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    9 views1 page

    Untitled

    Uploaded by

    El - lool
    The document contains 9 multiple choice questions about cost accounting concepts like break-even point, variable costs, fixed costs, and contribution margin ratio. It provides the question and the correct answer key for each question, covering topics such as the formula for break-even point being total fixed expenses divided by contribution margin per unit, variable costs varying directly with changes in activity level while fixed costs remain the same on a per unit basis but total as activity changes, and the contribution margin ratio formula being contribution margin divided by sales.

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    © All Rights Reserved
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    5. Which of the following is a correct formula of break-even point?

    a. Total fixed expenses/Total contribution margin


    b. Total fixed expenses/Contribution margin per unit
    c. Total variable expenses/Contribution margin per unit
    d. Total variable expenses/Total Contribution margin
    Ans: b

    6. Which of the following statements is correct about variable costs?


    a. Variable costs vary on per unit basis but remain the same in total as the level of
    activity changes
    b. Variable costs vary on per unit basis as the level of activity changes.
    c. Variable costs vary in total in direct proportion to changes in the level of activity.
    d. Variable costs remain the same in total as the level of activity changes
    Ans: c

    7. which of the following statements is correct about fixed costs?


    a. Fixed costs vary on per unit basis as well as in total as the level of activity
    changes.
    b. Fixed costs remain the same on per unit basis but vary in total as the level of
    activity changes
    c. Fixed costs vary in total as the level of activity changes
    d. Fixed costs vary on per unit basis but remain the same in total as the level of
    activity changes
    Ans: d

    8. Which of the following is a correct formula to calculate contribution margin ratio (CM
    ratio)?
    a. Contribution margin/Sales
    b. Contribution margin/Variable cost
    c. Contribution margin/Fixed cost
    d. Sales/Contribution margin
    Ans: a
    9. If contribution margin ratio is 0.3 that means contribution margin percentage is;
    a. 3%
    b. 30%
    c. 0.3%
    d. 0.03%
    Ans: b

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