Q. The Profit/Volume ratio or marginal ratio expresses the relation of ………… to sales.
✅ Correct Answer: (C)
contribution
Accounting for Management MCQs and Notes
Q. Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variable cost is………….
✅ Correct Answer: (B)
80000
Q. In absorption costing, managerial decision making is based upon …………..
✅ Correct Answer: (A)
profit
Q. ………………is the practice of charging all costs, both variable and fixed, to operations, processes, or products
✅ Correct Answer: (B)
absorption costing
Q. Marginal cost and differential cost are the same when ……..costs do not change with change in output
✅ Correct Answer: (B)
fixed costs
Q. …………..costs are the increase or decrease in total cost that result from producing additional or fewer units or from the adoption of an alternative course of action.
✅ Correct Answer: (D)
differential cost
Q. ………………..cost remains constant per unit of output irrespective of the level of output and thus fluctuates directly in proportion to changes in the volume of output
✅ Correct Answer: (A)
variable costs
Q. ………………..is the excess of sales over marginal cost of sales
✅ Correct Answer: (D)
contribution
Q. Under marginal costing, stocks of finished goods and work-in-process are valued at …………….. costs only
✅ Correct Answer: (C)
marginal cost
Q. Under marginal costing, …………… costs are treated as period costs and charged to profit and loss account for the period for which they are incurred
✅ Correct Answer: (B)
fixed costs