Gross Margin Calculations MCQs with Answers PDF Download – Test 210

If the contribution margin percentage is 20% and the selling price is $4000, then contribution margin per unit will be

1. $200
2. $400
3. $600
4. $800

If the budget sales units are 8000, the ending inventory is 2000 units and the beginning inventory is 3000, then the budget production would be

1. 11000 units
2. 13000 units
3. 10000 units
4. 7000 units

In customer cost hierarchy, the costs of individual customer support activities are classified as

1. discretionary channel costs
2. corporate-sustaining costs
3. distribution-channel costs
4. customer-sustaining costs

Considering the relationship of variables, the relationship in which the activity cost is included in the dependent variable, which has similar cost driver is classified as

1. heterogeneous relationship
2. extreme relationship
3. no homogeneous relationship
4. homogeneous relationship

The method which considers the lowest and highest values of cost driver and cost within relevant range is called

1. low high method
2. constant equation
3. variable equation
4. high low method