Accounting Practice MCQ Page 31
Multiple Choice questions for Accounting in the sets of 10 each on one page with questions and answers. All sets are useful in the preparation of subject tests for employment or admission.
Question: 2153 Contribution margin is equal to
- sales - fixed cost - profit
- profit + variable cost
- fixed cost - loss
- none of the above
Question: 2154 Reporting under marginal costing is accomplished by
- eliminating the work in progress inventory account
- including only variable costs in income statement
- matching variable costs against revenue and treating fixed costs as period costs
- treating all costs as period costs
Question: 2155 Profit / Volume ratio is an indicator of
- the volume of sales
- the volume of profit
- the rate at which goods are sold
- the of profit
- all of these
Question: 2156 There will be no difference in profit as shown by marginal costing and that of absorption costing when
- opening and closing stock of finished goods remain constant
- closing stock of finished goods is more than it s opening stock
- opening stock of finished goods is more than its closing stock
- none of the above
Question: 2157 when fixed cost id Rs. 3,000 and sales RS.50,000, the P/V ratio will be
- 14%
- 20%
- 25%
- p/v ratio cannot be computed from the data given
Question: 2158 when p/v ratio is 40% and sales value RS 10,000 the variable cost will be
- RS. 4,000
- RS. 6000
- RS. 10,000
- variable cost cannot be calculated from the data given
Question: 2159 if net profit is 10% and p/v ratio is 50%, the margin of safety will be
- 10%
- 20%
- 50%
- margin of safety cannot be computed
Question: 2160 The margin of safety may be improved by
- increasing sales volume
- increasing selling price
- lowering variable cost
- lowering fixed costs
- All of these
Question: 2161 an item whose entire amount is usually a differential cost is
- factory overhead
- period cost
- direct cost
- conversion cost
Question: 2162 As part of the data presented on support of a proposal to increase the production of car radios, the sales manager of XYZ Electronics reported the total additional cost required for the proposed increased level of production the increase in total cost is known as
- opportunity
- out-of-pocket cost
- controllable cost
- differential cost
Question: 2163 Alto palo company has temporary unused production capacity. the idle plant facilities can be used to manufacture a low margin item. the low margin item should be produced, if it can sold for more then its
- fixed costs
- variable costs
- prime costs
- indirect costs
Question: 2164 Cost-volume-profit analysis is most important for the determination of the
- volume of operations necessary to break even
- variable revenues necessary to equal fixed costs
- relationship between revenues and costs at various level of operations
- sales revenue necessary to equal fixed costs
Answers to the questions of Accounting on this page
Following list gives the correct choice for the answer of the Accounting mcqs.
2153 . C
2154 . C
2155 . D
2156 . A
2157 . B
2158 . B
2159 . B
2160 . E
2161 . C
2162 . D
2163 . B
2164 . C
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