Q. Which of the following are limitations of break-even analysis?
✅ Correct Answer: (A)
Static concept
Management Accounting MCQs and Notes
Q. Which of the following are characteristics of B.E.P?
✅ Correct Answer: (D)
All of the above.
Q. ___________ is not suitable where selling price is determined on the basis of cost-plus method.
✅ Correct Answer: (B)
Marginal costing
Q. Managers utilizes marginal costing for
✅ Correct Answer: (D)
All of the above
Q. Under absorption costing, managerial decisions are based on
✅ Correct Answer: (A)
Profit
Q. In context of net operating profit, which of the following statements are true?
✅ Correct Answer: (C)
Both a and b
Q. Absorption costing is also known as
✅ Correct Answer: (C)
Both a and b
Q. When contribution is positive but equal to fixed cost,
✅ Correct Answer: (D)
There will be neither profit not loss
Q. When contribution is negative but less than fixed cost,
✅ Correct Answer: (C)
There will be loss less than fixed costs
Q. Which of the following statements related to Contribution Analysis are ture?
✅ Correct Answer: (A)
If contribution is zero, there is loss equal to fixed costs