Managerial Accounting Principles and Formulas Quiz
Test your knowledge on managerial accounting with questions covering contribution margin, net income, break-even point, and more.
#1
Which of the following is an example of a variable cost?
Rent
Direct materials
Salaries of permanent employees
Insurance premiums
#2
Which of the following is an example of a fixed cost?
Direct labor
Utilities
Raw materials
Sales commissions
#3
Which of the following is an example of a period cost?
Direct materials
Direct labor
Advertising expenses
Utilities for the production facility
#4
What is the formula for calculating contribution margin?
Total Sales - Total Variable Costs
Total Sales - Total Fixed Costs
Total Sales - Total Variable and Fixed Costs
Total Sales / Total Variable Costs
#5
What is the formula for calculating net income?
Total Revenue - Total Expenses
Total Revenue - Total Variable Costs
Total Revenue - Total Fixed Costs
Total Revenue - Total Variable and Fixed Costs
#6
Which of the following statements is true about absorption costing?
It only considers variable manufacturing costs.
It includes all manufacturing costs, both variable and fixed, in the cost of a product.
It excludes direct materials and direct labor costs from product costs.
It is primarily used for budgeting purposes.
#7
Which of the following is a characteristic of managerial accounting?
Primarily focused on providing information for external users.
Historical in nature.
Future-oriented and forward-looking.
Subject to generally accepted accounting principles (GAAP).
#8
Which of the following costs is considered when calculating the relevant range for cost behavior analysis?
Fixed costs
Variable costs
Mixed costs
All of the above
#9
Which of the following statements is true about job costing?
It is used by service industries only.
It allocates indirect costs to jobs based on a predetermined overhead rate.
It is not suitable for industries where each unit of output is identical.
It tracks the costs of a specific job or order separately.
#10
What is the formula for calculating contribution margin ratio?
(Total Sales - Total Variable Costs) / Total Sales
Total Sales / Total Variable Costs
Total Sales - Total Fixed Costs
Total Sales / Total Fixed Costs
#11
What is the formula for calculating contribution margin per unit?
(Selling Price per Unit - Variable Cost per Unit)
(Selling Price per Unit / Variable Cost per Unit)
(Total Sales / Total Variable Costs)
(Total Sales - Total Variable Costs)
#12
What is the formula for calculating the break-even point in units?
Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)
(Fixed Costs + Total Variable Costs) / Selling Price per Unit
Fixed Costs / Contribution Margin per Unit
(Fixed Costs + Total Variable Costs) / Contribution Margin per Unit
#13
What is the formula for calculating the predetermined overhead rate in traditional costing?
Estimated total manufacturing overhead / Estimated total allocation base
Actual total manufacturing overhead / Actual total allocation base
Estimated total manufacturing overhead / Actual total allocation base
Actual total manufacturing overhead / Estimated total allocation base
#14
What is the formula for calculating return on investment (ROI)?
(Net Income / Total Assets) * 100
(Net Income / Total Sales) * 100
(Net Income / Total Equity) * 100
(Net Income / Total Liabilities) * 100
#15
What is the formula for calculating the contribution margin ratio?
(Contribution Margin / Sales) * 100%
(Contribution Margin / Total Variable Costs) * 100%
(Contribution Margin / Total Fixed Costs) * 100%
(Contribution Margin / Total Revenue) * 100%
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