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Contribution Margin versus Gross Margin Quiz – Mock Test 17 PDF Download

MCQ 81: Competitiveness can be best measured by:

  1. Gross margin
  2. income margin
  3. sales margin
  4. cost margin

MCQ 82: The partial or completed units of manufactured goods, that do not meet customer specifications and get sold at reduced price or simply discarded, are called:

  1. spoilage
  2. rework
  3. scrap
  4. equivalence

MCQ 83: The gross margin is added to the cost of sold goods to calculate:

  1. revenues
  2. selling price
  3. unit price
  4. bundle price

MCQ 84: If the contribution margin is $12000, the total variable cost is $7000, then the total revenue will be:

  1. $5,000
  2. −$5000
  3. $19,000
  4. −$19000

MCQ 85: In process and job costing system, the normal spoilage cost is considered as:

  1. conversion costs
  2. sunk costs
  3. inventoriable costs
  4. non inventoriable costs

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