Cost Volume Profit Analysis 1-10 I Accountancy Knowledge

1. Break-even analysis is also called?

(a) Business Analysis

(b) Unit sales

(c) Cost-Volume-Profit analysis

(d) None of the above

Correct! Wrong!

2. Break even capacity----------------------?

(a) Breakeven sales in dollar/Normal sales in dollar

(b) Normal sales in dollar/ Break even sales in dollar

(c) All of above

(d) None of above

Correct! Wrong!

3. Estimate sales in amount is____________________?

(a) FC+ Profit/Contribution margin per unit

(b) FC+ Profit/Contribution margin Ratio

(c) VC+ Profit/Contribution margin

(d) VC+ Profit/Contribution margin Ratio

Correct! Wrong!

4. To find the break-even in dollars, you have to divide the fixed cost by ____________?

(a) Variable cost

(b) Contribution Margin per unit

(c) Contribution Margin

(d) Contribution Margin ratio

Correct! Wrong!

5. The break-even point can be defined as?

(a) The level of activity at which there is neither profit nor loss

(b) The level of activity where cash flow is zero

(c) The level of activity where profits equal fixed costs

(d) The level of activity where variable costs are covered by sales revenue

Correct! Wrong!

6. The break-even point in units is represented by the equation?

(a) Fixed costs / Variable costs

(b) Fixed costs / selling price per unit

(c) (Sales revenue - Fixed costs) / Contribution per unit

(d) Fixed costs / Contribution per unit

Correct! Wrong!

7. If actual units produced are lower than the budgeted level of production which of the following types of cost would you expect to be lower than the budget?

(a) Variable costs per unit

(b) Total variable costs

(c) Total fixed costs

(d) None

Correct! Wrong!

8. Costs that do not change when the activity base fluctuates are known as?

(a) Variable costs

(b) Discretionary costs

(c) Fixed costs

(d) Mixed costs

Correct! Wrong!

9. A company's telephone bill consisting of a Rs. 200 monthly base amount, plus long distance charges, would be classified as a?

(a) Variable cost

(b) Committed fixed cost

(b) Discretionary fixed cost

(d) Mixed cost

Correct! Wrong!

10. A company has fixed costs of Rs. 50,000 and variable costs per unit of output of Rs. 8. If its sole product sells for Rs. 18, what is the break-even quantity of output?

(a) Rs. 2,500

(b) Rs. 5,000

(c) Rs. 1,500

(d) Rs. 7,500

Correct! Wrong!

Cost Volume Profit Analysis MCQs (1-10)

1. Break-even analysis is also called?

2. Break even capacity----------------------?

3. Estimate sales in amount is____________________?

4. To find the break-even in dollars, you have to divide the fixed cost by ____________?

5. The break-even point can be defined as?

6. The break-even point in units is represented by the equation?

7. If actual units produced are lower than the budgeted level of production which of the following types of cost would you expect to be lower than the budget?

8. Costs that do not change when the activity base fluctuates are known as?

9. A company's telephone bill consisting of a Rs. 200 monthly base amount, plus long distance charges, would be classified as a?

10. A company has fixed costs of Rs. 50,000 and variable costs per unit of output of Rs. 8. If its sole product sells for Rs. 18, what is the break-even quantity of output?

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