Cost Management And Pricing Decisions(Cost Accounting ) Questions and Answers
Question 1. If the contribution margin per unit is $500 and the contribution margin percentage is 25%, then the selling price will be
$2,000
$5,250
$4,280
$3,860
Explanation:-
Answer: Option A. -> $2,000 Answer: (a).$2,000
Question 2. The factor, which is largely considered in making or buying decisions is
quality of suppliers
dependability of suppliers
production irrelevancy
both a and b
Explanation:-
Answer: Option D. -> both a and b Answer: (d).both a and b
Question 3. The kind of costs that has been occurred in past are also known as
unrecorded costs
recorded costs
sunk costs
bunked costs
Explanation:-
Answer: Option C. -> sunk costs Answer: (c).sunk costs
Question 4. If the contribution margin percentage is 20% and the selling price is $4000, then contribution margin per unit will be
$200
$400
$600
$800
Explanation:-
Answer: Option D. -> $800 Answer: (d).$800
Question 5. The third step in decision making process is
linear predictions
dependent predictions
making predictions
independent predictions
Explanation:-
Answer: Option C. -> making predictions Answer: (c).making predictions
Question 6. The cost such as dispose value of an old machine is $6000 is classified as
irrelevant
depreciated cost
salvages
relevant
Explanation:-
Answer: Option D. -> relevant Answer: (d).relevant
Question 7. The costs which are related to different functions of the value chain of company, such as marketing and manufacturing costs are considered as
value costs
future function costs
business function costs
sunk function costs
Explanation:-
Answer: Option C. -> business function costs Answer: (c).business function costs
Question 8. The type of outcomes that can be measured in numerical terms are classified as
qualitative factors
quantitative factors
expected factors
recorded factors
Explanation:-
Answer: Option B. -> quantitative factors Answer: (b).quantitative factors
Question 9. The second step in decision making process is
multi-collinearity information
quantitative information
qualitative analysis
obtaining information
Explanation:-
Answer: Option D. -> obtaining information Answer: (d).obtaining information
Question 10. The low level managers in organizations are to make decisions about
net income irrelevancy
operating income maximization
operating income minimization
operating income relevancy
Explanation:-
Answer: Option B. -> operating income maximization Answer: (b).operating income maximization