Q. Sales Rs. 25,000; Variable cost Rs. 8,000; Fixed cost Rs. 5,000; Break-even sales in value .
✅ Correct Answer: (B)
Rs. 7,353.
Cost and Management Accounting (CMA) MCQs and Notes
Q. Selling price per unit Rs. 10; Variable cost Rs. 8 per unit; Fixed cost Rs. 20,000; Break-even production in units .
✅ Correct Answer: (A)
10,000.
Q. If fixed costs decrease while the variable cost per unit remains constant, the new contribution margin in relation to the old contribution margin will be .
✅ Correct Answer: (B)
unchanged .
Q. 1f` fixed costs decrease while variable cost per unit remains constant, the new B.E.P in relation to the old B.E.P will be .
✅ Correct Answer: (B)
higher.
Q. The conventional Break-even analysis does not assume that .
✅ Correct Answer: (B)
total fixed costs remain the same.
Q. CVP analysis is most important for the determination of .
✅ Correct Answer: (A)
sales revenue necessary to equal fixed costs .
Q. Angie of incidence is .
✅ Correct Answer: (A)
the angle between the sales line and the total cost line.
Q. A large Margin of Safety indicates .
✅ Correct Answer: (C)
the soundness of the business.
Q. An increase in selling price .
✅ Correct Answer: (B)
decreases the break-even point.
Q. An increase in variable costs .
✅ Correct Answer: (C)
reduces contribution .