Performance Metrics in Cost Accounting Quiz
Test your knowledge of cost accounting metrics with this quiz covering topics like ROI, gross margin, and asset turnover.
#1
Which of the following is NOT a common performance metric in cost accounting?
Return on Investment (ROI)
Cost Variance
Break-even Point
Earnings per Share (EPS)
#2
Which of the following statements best describes the Break-even Point?
The point where total revenue equals total variable costs
The point where total revenue equals total fixed costs
The point where total revenue equals total costs
The point where total revenue exceeds total costs
#3
What is the primary purpose of using performance metrics in cost accounting?
To evaluate the company's financial health
To assess employee performance
To determine product pricing
To monitor inventory levels
#4
Which of the following is a measure of how efficiently a company uses its assets to generate revenue?
Return on Investment (ROI)
Gross Margin
Asset Turnover Ratio
Operating Income
#5
What is the formula for calculating Gross Margin?
Net Sales - Cost of Goods Sold
Operating Income / Net Sales
(Net Sales - Cost of Goods Sold) / Net Sales
Cost of Goods Sold / Net Sales
#6
Which of the following is a measure of a company's profitability relative to its shareholders' equity?
Return on Assets (ROA)
Return on Equity (ROE)
Net Profit Margin
Earnings Before Interest and Taxes (EBIT)
#7
What is the formula for calculating Return on Investment (ROI)?
(Net Income - Dividends) / Total Equity
Net Income / Total Assets
(Net Profit / Cost of Investment) x 100%
Operating Income / Total Sales
#8
What does the Cost Variance metric indicate?
The difference between actual costs and planned costs
The difference between fixed costs and variable costs
The difference between historical costs and current costs
The difference between direct costs and indirect costs
#9
Which of the following statements about Operating Income is true?
It is calculated by subtracting total expenses from net sales
It represents the total profit earned by a company
It includes non-operating revenue and expenses
It is also known as Gross Profit
#10
What does Return on Assets (ROA) measure?
The company's profitability relative to its shareholders' equity
The company's ability to meet its short-term obligations
The efficiency of utilizing assets to generate revenue
The company's efficiency in managing its inventory
#11
Which of the following statements about Return on Investment (ROI) is true?
It is a measure of a company's efficiency in managing its assets to generate revenue
It is calculated by dividing net income by total equity
A higher ROI indicates better profitability
ROI is primarily used to measure liquidity
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