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All Free Accounting MCQs with Answers

Every Accounting question in the bank, across all chapters, each with the correct answer and a written explanation. Free and unlimited, with no account needed.

1,971 questions · page 56 of 99

1101. If the break-even number of units are 200 units and the fixed cost is $80000, then the contribution margin per unit will be __________?

  • A. $400
  • B. $600
  • C. $800
  • D. $1,000Access Government Careers

Explanation: At break-even, fixed costs equal total contribution, so contribution margin per unit is fixed costs divided by break-even units: $80,000 ÷…

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Correct answer: $400

1102. If the contribution margin per unit is $40 per unit and selling price is $200, then the contribution margin percentage would be ____________?

  • A. 20%
  • B. 10%
  • C. 22%
  • D. 16%

Explanation: Contribution margin percentage is contribution margin per unit divided by selling price, multiplied by 100: ($40 ÷ $200) × 100 = 20%.

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Correct answer: 20%

1103. If the contribution margin is $15000 and the units sold are 500 units, then the contribution margin per unit would be ___________?

  • A. $20 per unit
  • B. $30 per unit
  • C. $50 per unit
  • D. $40 per unitHire An Accountant

Explanation: Contribution margin per unit equals total contribution margin divided by units sold: $15,000 ÷ 500 = $30 per unit.

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Correct answer: $30 per unit

1104. At the break-even point, an operating income must be equal to ____________?

  • A. $3,000
  • B. $2,000
  • C. $1,000
  • D. zeroTake Economics Courses

Explanation: At the break-even point, total revenue equals total costs, leaving no profit or loss. Therefore, operating income is zero.

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Correct answer: zeroTake Economics Courses

1105. If the contribution margin per unit is $700 per unit and the break-even per unit is $40, then the fixed cost would be _____________?

  • A. $35,000
  • B. $28,000
  • C. $17,500
  • D. $82,000

Explanation: Fixed cost at break-even equals contribution margin per unit multiplied by break-even units: $700 × 40 = $28,000.

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Correct answer: $28,000

1106. The quantity of manufactured goods are sold at which the total cost equal, is known as _____________?

  • A. breakeven point
  • B. cost point
  • C. revenue point
  • D. quantity point

Explanation: The break-even point is the level of sales or production at which total revenue equals total cost. At this point, operating profit is zero.

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Correct answer: breakeven point

1107. If the contribution margin per unit is $500 and the contribution margin percentage is 25%, then the selling price will be ____________?

  • A. $2,000
  • B. $5,250
  • C. $4,280
  • D. $3,860

Explanation: Contribution margin percentage equals contribution margin per unit divided by selling price, so selling price = $500 ÷ 25% = $2,000.

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Correct answer: $2,000

1108. In a relevant range, the variable cost per unit, selling price and total fixed costs are ___________?

  • A. unknown and variable
  • B. known and variable
  • C. unknown and constant
  • D. known and constant

Explanation: Within the relevant range, selling price and variable cost per unit remain constant, while total fixed costs also remain constant.

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Correct answer: known and constant

1109. If the fixed cost is $40000 and the contribution margin per unit is $800 per unit, then the breakeven of units will be ___________?

  • A. 60 units
  • B. 30 units
  • C. 50 units
  • D. 70 units

Explanation: Break-even units are found by dividing total fixed costs by contribution margin per unit: $40,000 ÷ $800 = 50 units.

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Correct answer: 50 units

1110. If the fixed cost is $30000 and the contribution margin per unit is $600 per unit, then the breakeven in units will be ____________?

  • A. 50 units
  • B. 60 units
  • C. 70 units
  • D. 65 units

Explanation: Break-even units = fixed costs ÷ contribution margin per unit, so $30,000 ÷ $600 = 50 units. Hence, option a is correct.

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Correct answer: 50 units

1111. If the contribution margin percentage is 20% and the selling price is $4000, then contribution margin per unit will be ______________?

  • A. $200
  • B. $400
  • C. $600
  • D. $800

Explanation: Contribution margin per unit equals selling price multiplied by the contribution margin percentage: $4,000 × 20% = $800.

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Correct answer: $800

1112. The selling price is multiplied to quantity of sold units to calculate _____________?

  • A. revenues
  • B. sold quantity
  • C. sold price
  • D. bulk price

Explanation: Multiplying selling price per unit by the number of units sold gives total sales revenue.

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Correct answer: revenues

1113. The contribution margin per unit is divided by selling price to calculate ____________?

  • A. fixed margin percentage
  • B. contribution margin percentage
  • C. variable margin percentage
  • D. breakeven margin percentage

Explanation: Dividing contribution margin per unit by selling price gives the contribution margin percentage, also called the contribution margin…

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Correct answer: contribution margin percentage

1114. In manufacturing companies, the revenue and cost drivers are categorized under ____________?

  • A. variable costs
  • B. costs of goods sold
  • C. number of units sold
  • D. all of above

Explanation: For many manufacturing cost-volume-profit analyses, the number of units sold is the main driver of both revenue and unit-related costs.

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Correct answer: number of units sold

1115. If the fixed cost is $50000 and the contribution margin percentage is 20%, then the breakeven revenue will be _____________?

  • A. $100,000
  • B. $150,000
  • C. $250,000
  • D. $225,000

Explanation: Break-even revenue is calculated as fixed costs divided by the contribution margin percentage: $50,000 ÷ 20% = $250,000.

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Correct answer: $250,000

1116. The contribution margin per unit is divided by contribution margin percentage to calculate ______________?

  • A. percentage price
  • B. margin price
  • C. contribute price
  • D. selling price

Explanation: Selling price equals contribution margin per unit divided by the contribution margin ratio or percentage.

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Correct answer: selling price

1117. The fixed cost is divided to contribution margin to calculate _____________?

  • A. breakeven revenue
  • B. total revenue
  • C. fixed revenue
  • D. variable revenue

Explanation: Break-even revenue is calculated by dividing fixed cost by the contribution margin ratio or percentage.

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Correct answer: breakeven revenue

1118. The contribution margin per unit is divided by the selling price of the product to calculate ______________?

  • A. selling margin percentage
  • B. cost margin percentage
  • C. discount percentage
  • D. contribution margin percentage

Explanation: Contribution margin percentage measures the contribution margin per unit as a proportion of selling price, so it is calculated as…

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Correct answer: contribution margin percentage

1119. If the contribution margin per unit is $800 and the selling price is $20000, then the contribution margin percentage will be _____________?

  • A. 17%
  • B. 14%
  • C. 4%
  • D. 25%

Explanation: Contribution margin percentage is contribution margin per unit divided by selling price: 800 ÷ 20,000 = 0.04, or 4%.

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Correct answer: 4%

1120. The difference between variable cost per unit and the selling price can be classified as _____________?

  • A. contribution margin per unit
  • B. variable margin per unit
  • C. selling margin per unit
  • D. sale per unit

Explanation: Selling price less variable cost per unit is the contribution margin per unit.

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Correct answer: contribution margin per unit
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