Management Accounting – Set 3 January 29, 2025 by aasi 0% Report a question What’s wrong with this question? You cannot submit an empty report. Please add some details. 1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950 Management Accounting – Set 3 Dear ! This is Management Accounting – Set 3 Quiz and it contains 50 questions. Keep Learning! 1 / 50 1) If gross margin is $2000 and revenue is $5000, then cost of goods sold would be -$8000 $3,000 -$3000 $8,000 2 / 50 2) All choices for decision that are easily available to managers are classified as outcome actions events distribution 3 / 50 3) In cost accounting, financial way of charging price for product above cost, of acquiring or producing goods is known as sales margin cost margin Gross margin income margin 4 / 50 4) Amount of money by which total revenues exceed breakeven revenues is classified as margin of safety margin of profit margin of loss margin of income 5 / 50 5) If target net income is $36000 and tax rate is 40%, then target operating income will be $10,000 $20,000 $40,000 $60,000 6 / 50 6) If contribution margin of bundle is $4000 and revenue of bundle is $16000, then contribution margin percentage for bundle will be 10.00% 15.00% 25.00% 35.00% 7 / 50 7) Difference between actual result and corresponding amount of flexible budget, on basis of actual level of output is classified as sales mix variance sales volume variance flexible budget variance static budget variance 8 / 50 8) In accounting, possibility of deviation of actual amount from an expected amount is classified as contribution certainty uncertainty margin 9 / 50 9) If target net income is $9600 and tax rate is 40%, then target operating income would be $10,000 $12,000 $16,000 $14,000 10 / 50 10) Fixed cost, and contribution margin percentage for bundle are divided to calculate breakeven costs breakeven revenues breakeven units breakeven sales 11 / 50 11) Quantity or number of units of different products that together make up total sales of company is called sales mix product mix unit mix quantity mix 12 / 50 12) If budgeted sales in unit is 50 and breakeven sales in unit is 12, then margin of safety in units will be 62 38 48 58 13 / 50 13) If breakeven revenue is $220000 and revenue per bundle is $10000, then number of bundles to be sold to breakeven will be 32 bundle 22 bundle 42 bundle 38 bundle 14 / 50 14) If sales quantity is 7000 units and breakeven quantity is 1500 units, then margin of safety would be 4500 units 5500 units 8500 units 9500 units 15 / 50 15) Type of distribution, which consists of alternative outcomes and probabilities of events is classified as event table outcome table decision table probability table 16 / 50 16) Fixed cost is added to target operating income and then divided to contribute margin per unit to calculate quantity of units required to sold selling of units sold units contributed units 17 / 50 17) If fixed cost is $15000 and breakeven revenue is $45000 then contribution margin will be 33.34% 43.34% 23.00% 25.00% 18 / 50 18) Formula to calculate contribution margin is revenue – all variable cost revenue + all variable cost cost + revenue revenue – breakeven units 19 / 50 19) Difference between corresponding static budget and flexible budget amount is called sales volume variance sales mix variance sales quantity variance market share variance 20 / 50 20) If fixed cost is $65000 and contribution margin percentage for bundle is 0.575, then breakeven revenue will be $113,043.48 $1,200,000 $130,000 $140,000 21 / 50 21) If fixed cost is $20000, target operating income is $10000 and contribution margin per unit is $1200 then required units to be sold will be 55 units 45 units 35 units 25 units 22 / 50 22) Difference between budgeted contribution margin for actual sales mix and budgeted sales mix is called sales quantity variance cost mix variance volume mix variance sales mix variance 23 / 50 23) Contribution margin is $34000 and operating income is $12000, then degree of operating leverage will be 4.84 2.84 3.84 5.84 24 / 50 24) If gross margin is $9000 and cost of goods sold is $8000 then revenue will be $1,000 -$1000 $17,000 -$17000 25 / 50 25) If contribution margin is $72000 and operating income is $12000, then degree of operating leverage would be 8 7 6 5 26 / 50 26) In corporate costs, costs incur for employee recruitment, development and training are classified as discretionary costs human resource management costs corporate administration costs treasury costs 27 / 50 27) If budgeted revenue is $50000 and breakeven revenue is $35000, then margin of safety would be $12,000 $14,000 $15,000 $16,000 28 / 50 28) An effect of fixed cost to change in operating income is classified as uncertain margin certain margin operating margin operating leverage 29 / 50 29) Gross margin is added into cost of sold goods is to calculate the revenues operating leverage contribution margin operating margin 30 / 50 30) Target operating income is multiplied to tax rate and then subtracted from target operating income to calculate target net cost target net income target net gain target net loss 31 / 50 31) Set of all occurrences that may happen in near future or in any other fixed time are called events distribution outcome actions 32 / 50 32) In monetary terms, an expected value of outcome is classified as expected value expected decision value expected outcome value expected monetary value 33 / 50 33) In customer cost hierarchy, cost of activities related to specific channel of distribution is classified as discretionary channel costs corporate-sustaining costs distribution-channel costs engineered resource costs 34 / 50 34) Fixed cost is divided by break-even revenues to calculate cost margin fixed margin revenue margin contribution margin 35 / 50 35) Contribution margin is divided to operate income to calculate degree of operating leverage degree of change degree of change in margin degree of change in income 36 / 50 36) If gross margin is $6000 and total revenue is $26000, then gross margin percentage will be 23.08% 24.08% 25.08% 26.08% 37 / 50 37) If total units of product A, B and C are as 200,300 and 400 respectively then sales mix would be 100 units 900 units 400 units 500 units 38 / 50 38) If sales volume variance is $8500 and static budget amount is $2000, then flexible budget amount would be $6,500 $6,600 $6,700 $6,800 39 / 50 39) If contribution margin is $3000 and revenues are $9000, then all variable costs will be $12,000 $6,000 -$6000 -$12000 40 / 50 40) Gross margin is $7000 and revenues are $16000, then cost of goods sold would be $23,000 -$23000 -$9000 $9,000 41 / 50 41) Gross margin is divided by revenues to calculate the income margin percentage Gross margin percentage cost margin percentage sales margin percentage 42 / 50 42) If breakeven revenue is $360000 and revenue per bundle is $12000, then number of bundles to be sold to breakeven can be 52 bundles 48 bundles 45 bundles 30 bundles 43 / 50 43) If margin of safety is $25000 and budgeted revenue is $45000, then margin of safety in percentage will be 55.56% 25.50% 28.00% 45.00% 44 / 50 44) Type of distribution, which describes whether events to be occurred are mutually exclusive or collectively exhaustive can be classified as mutual distribution probability distribution collective distribution marginal distribution 45 / 50 45) executive salaries, rent and other general administration cost in corporate costs are classified under human resource management costs corporate administration costs treasury costs discretionary costs 46 / 50 46) Revenue is $11000 and all variable cost is $6000, then contribution margin would be -$17000 $17,000 $5,000 -$5000 47 / 50 47) Fixed cost is $25000 and breakeven revenue is $95000, then contribution margin will be $32 $30 $25 $26.31 48 / 50 48) Difference between static budget amount and flexible budget amount is named as sales mix variance sales volume variance flexible budget variance static budget variance 49 / 50 49) Graph, which shows change in sold quantity and its effect on operating income is called PV graph CV graph SO graph QI graph 50 / 50 50) If budgeted revenue is $20000 and breakeven revenue is $15000, then margin of safety will be $35,000 $13,000 $5,000 $10,000 Your score isThe average score 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