CVP Analysis MCQ with Answers PDF Download – Test 176

MCQ 876: If the selling price is $2000 and the contribution margin per unit is $800, then the contribution margin percentage would be:

1. 40%
2. 25%
3. 60%
4. 75%

MCQ 877: If the sales budget variance for operating income is $58000 and the static budget amount is $15000, then flexible budget amount will be:

1. $43,000
2. $73,000
3. $63,000
4. $53,000

MCQ 878: The costing system, which classify cost into cost categories in a way when an expense is incurred in the process is called:

1. conversion expense costing system
2. inventory costing system
3. process costing system
4. job costing system

MCQ 879: The method, which allocates the cost of support department, to operating and support departments is known as:

1. indirect method
2. direct method
3. step down method
4. reciprocal method

MCQ 880: In estimation of cost function, an example of independent variable is:

1. level of activity
2. quantity stored
3. quantity manufactured
4. quality of product