Q. Margin of Safety is the difference between .
✅ Correct Answer: (B)
actual sales and break-even sales.
Cost and Management Accounting (CMA) MCQs and Notes
Q. P/V Ratio is an indicator of .
✅ Correct Answer: (D)
the rate of profit.
Q. Contribution margin is equal to .
✅ Correct Answer: (A)
fixed cost - loss .
Q. Period costs are .
✅ Correct Answer: (D)
fixed costs.
Q. Contribution margin is also known as .
✅ Correct Answer: (A)
marginal income .
Q. Absorption costing differs from marginal costing is the .
✅ Correct Answer: (B)
amount of costs assigned to individual units of products .
Q. One of the primary differences between marginal costing and absorption costing regarding the treatment of .
✅ Correct Answer: (B)
fixed overheads.
Q. Production cost under marginal costing includes .
✅ Correct Answer: (C)
. prime cost and variable overhead.
Q. Depreciation on fixed assets is .
✅ Correct Answer: (D)
non operating expense.
Q. Principle’ for preparation of working capital statement -Decrease in current Liability .
✅ Correct Answer: (A)
increases working capital.