TOPIC COST VOLUME PROFIT ANALYSIS

1. It is used to fixed cost to get higher percentage changes in profit as sales changes.
a. break even point
b. operating leverage
c. cost volume profit
d. margin safety
Answer: B

2. It represents the number of units or amount of sales revenue that the company can absorb
before incurring a loss.
a. break even point
b. operating leverage
c. cost volume profit
d. margin safety
Answer: D

3. What do you call the amount remaining after deducting the variable cost per unit from the
selling price per unit?
a. contribution margin
b. margin safety
c. contribution margin ratio
Answer: A

4. What cost that are assumed to remain constant regardless of changes in volume?
a.variable cost
b. fixed cost
c. mixed cost
d. semi-variable cost
Answer: B
5. It is being used by companies to determine the break even point,which is the point of zero
profit(no profit,no loss).
a. margin safety
b.break even point
c .cost volume profit
d. operating leverage
Answer: C

6. What is the cost that remain constant on a per unit basis and this cost fluctuate in direct
proportion to volume?
a. variable cost
b. mixed cost
c. fixed cost
d. None of the above
Answer: A

7. The sales mix is measured in terms of

a. Units sold
b. Pesos
c. A and B
d. None of the above
Answer: A

8. Pricing decisions enables us to study

a. the perfect of changing price only
b. the perfect of changing price and volume relationship on total profits.
c. a and b
d. none of the above
Answer:B

9. It's is one of example of fixed cost.

A. Rent insurance for factory building
B. Cost direct labor
C. Telephone Bills
D. None of the above.
Answer B.

10. It's is one of example of variable cost.

A. Rent insurance for factory building
B. Cost direct labor
C. Telephone Bills
D. None of the above.
Answer B

11. It is one of example of semi-variable cost.

A. Rent insurance for factory building
B. Cost direct labor
C. Telephone Bills
D. None of the above.
Answer C

12. Break Even Point analysis is used to:

a. evaluate fixed costs
b. evaluate variable costs
c. a and b
d. none of the above
Answer:C

13. It is affected by the three

factors selling price, variable and volume of sales.
A. break even point
B.Contribution Margin
C.Cost Volume
D.Both A and C
Answer:A

14. It represents the strength of the business

A. Margin of safety
B. Break even point
C. Contributiob margin
D. All of the above
Answer: A

15. it is very useful in making wise business dicision?

A.Break even point
B .Cost volume profit
C. Mixed cost
D.Revenue

answer: B