Cost & Management Accounting

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Q. If a company has a budgeted profit of $100,000 and an actual profit of $80,000, what is the profit variance?
  • A. $20,000 Favorable
  • B. $20,000 Unfavorable
  • C. $30,000 Favorable
  • D. $30,000 Unfavorable
Q. If a company has a budgeted profit of $100,000 and an actual profit of $90,000, what is the profit variance?
  • A. $10,000 Favorable
  • B. $10,000 Unfavorable
  • C. $20,000 Favorable
  • D. $20,000 Unfavorable
Q. If a company has a budgeted profit of $30,000 and actual profit of $25,000, what is the profit variance?
  • A. $5,000 Favorable
  • B. $5,000 Unfavorable
  • C. $10,000 Favorable
  • D. $10,000 Unfavorable
Q. If a company has a budgeted profit of $50,000 and actual profit of $45,000, what is the profit variance?
  • A. $5,000 Favorable
  • B. $5,000 Unfavorable
  • C. $10,000 Favorable
  • D. $10,000 Unfavorable
Q. If a company has a budgeted profit of $50,000 and an actual profit of $30,000, what is the profit variance?
  • A. $20,000 Favorable
  • B. $20,000 Unfavorable
  • C. $10,000 Favorable
  • D. $10,000 Unfavorable
Q. If a company has a budgeted profit of $50,000 and an actual profit of $40,000, what is the profit variance?
  • A. $10,000 Favorable
  • B. $10,000 Unfavorable
  • C. $20,000 Favorable
  • D. $20,000 Unfavorable
Q. If a company has a budgeted sales of $500,000 and actual sales of $450,000, what is the sales variance?
  • A. $50,000 Favorable
  • B. $50,000 Unfavorable
  • C. $100,000 Favorable
  • D. $100,000 Unfavorable
Q. If a company has a budgeted sales revenue of $200,000 and actual sales revenue of $180,000, what is the sales variance?
  • A. $20,000 Favorable
  • B. $20,000 Unfavorable
  • C. $10,000 Favorable
  • D. $10,000 Unfavorable
Q. If a company has a budgeted sales volume of 1,000 units and a budgeted variable cost of $20 per unit, what is the total budgeted variable cost?
  • A. $20,000
  • B. $15,000
  • C. $25,000
  • D. $30,000
Q. If a company has a contribution margin of $15 per unit and sells 2,000 units, what is the total contribution?
  • A. $30,000
  • B. $15,000
  • C. $45,000
  • D. $60,000
Q. If a company has a contribution margin of $15 per unit and sells 2,000 units, what is the total contribution margin?
  • A. $30,000
  • B. $25,000
  • C. $20,000
  • D. $15,000
Q. If a company has a contribution margin of $15,000 and fixed costs of $10,000, what is the net profit?
  • A. $5,000
  • B. $15,000
  • C. $10,000
  • D. $0
Q. If a company has a contribution margin of $200,000 and fixed costs of $150,000, what is the net profit?
  • A. $50,000
  • B. $200,000
  • C. $150,000
  • D. $350,000
Q. If a company has a contribution margin of $25 per unit and sells 1,200 units, what is the total contribution?
  • A. $30,000
  • B. $25,000
  • C. $20,000
  • D. $15,000
Q. If a company has a contribution margin of $30 and sells 1,000 units, what is the total contribution?
  • A. $20,000
  • B. $25,000
  • C. $30,000
  • D. $35,000
Q. If a company has a contribution margin of $30 per unit and fixed costs of $12,000, how many units must be sold to achieve a target profit of $3,000?
  • A. 500 units
  • B. 600 units
  • C. 400 units
  • D. 700 units
Q. If a company has a contribution margin of $30 per unit and fixed costs of $150,000, how many units must be sold to break even?
  • A. 5,000 units
  • B. 4,000 units
  • C. 3,000 units
  • D. 6,000 units
Q. If a company has a contribution margin of $30 per unit and fixed costs of $150,000, how many units must it sell to break even?
  • A. 5,000 units
  • B. 10,000 units
  • C. 15,000 units
  • D. 20,000 units
Q. If a company has a contribution margin of $30 per unit and fixed costs of $90,000, how many units must be sold to break even?
  • A. 3,000 units
  • B. 2,000 units
  • C. 1,500 units
  • D. 4,000 units
Q. If a company has a contribution margin of $30 per unit and fixed costs of $90,000, how many units must it sell to break even?
  • A. 1,000 units
  • B. 3,000 units
  • C. 2,000 units
  • D. 4,000 units
Q. If a company has a contribution margin ratio of 40% and fixed costs of $50,000, what is the sales revenue needed to achieve a target profit of $10,000?
  • A. $150,000
  • B. $100,000
  • C. $125,000
  • D. $200,000
Q. If a company has a flexible budget for 10,000 units at $5 per unit, what is the total budgeted revenue?
  • A. $50,000
  • B. $100,000
  • C. $25,000
  • D. $75,000
Q. If a company has a margin of safety of $10,000 and its break-even sales are $50,000, what are its actual sales?
  • A. $40,000
  • B. $60,000
  • C. $50,000
  • D. $70,000
Q. If a company has a margin of safety of $20,000 and its total sales are $100,000, what is the break-even sales?
  • A. $80,000
  • B. $60,000
  • C. $40,000
  • D. $20,000
Q. If a company has a margin of safety of $5,000 and its total sales are $25,000, what is the break-even sales level?
  • A. $20,000
  • B. $25,000
  • C. $30,000
  • D. $15,000
Q. If a company has a margin of safety of 20% and its break-even sales are $50,000, what are its actual sales?
  • A. $60,000
  • B. $50,000
  • C. $40,000
  • D. $70,000
Q. If a company has a marginal cost of $15 per unit and sells each unit for $25, what is the contribution margin per unit?
  • A. $10
  • B. $15
  • C. $25
  • D. $5
Q. If a company has a sales price of $50, variable costs of $30, and fixed costs of $100,000, what is the contribution margin ratio?
  • A. 40%
  • B. 20%
  • C. 30%
  • D. 50%
Q. If a company has a selling price of $15 per unit, variable cost of $9 per unit, and fixed costs of $30,000, what is the contribution margin per unit?
  • A. $6
  • B. $9
  • C. $15
  • D. $30
Q. If a company has a selling price of $80, variable costs of $50, and fixed costs of $10,000, what is the margin of safety in dollars if they expect to sell 300 units?
  • A. $2,000
  • B. $4,000
  • C. $6,000
  • D. $8,000
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