If the contribution margin is $3000 and the revenues are $9000, then all the variable costs will be ____________?
Correct answer: B. $6,000
- A. $12,000
- B. $6,000
- C. −$6000
- D. −$12000
Explanation
Contribution margin equals revenue minus variable cost, so variable costs are $9,000 − $3,000 = $6,000.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
If the breakeven revenue is $220000 and the revenue per bundle is $10000, then the number of bundles to be sold to breakeven will be ___________?
If the sales quantity is 7000 units and the breakeven quantity is 1500 units, then the margin of safety would be __________?
If the target net income is $36000 and the tax rate is 40%, then the target operating income will be __________?
If the margin of safety is $35000 and the budgeted revenue is $80000, then the margin of safety in percentage will be _____________?
The contribution margin is divided to operate income to calculate ______________?
The graph, which shows the change in sold quantity and its effect on operating income is called ___________?