MBA Accounting 3

Question 1

In managerial accounting, contribution margin is calculated as:

Accepted Answer

Revenue minus total variable costs

Answer

Revenue minus total fixed costs

Answer

Gross profit minus operating expenses

Answer

Net income plus depreciation and amortization

Question 2

Break-even analysis identifies the level of sales at which:

Accepted Answer

Total revenue equals total costs, yielding zero profit or loss

Answer

Profit reaches its maximum potential

Answer

Variable costs equal fixed costs

Answer

Operating cash flow turns positive

Question 3

Which product costing method assigns both variable and fixed manufacturing overhead costs to each unit produced?

Accepted Answer

Absorption Costing

Answer

Variable Costing

Answer

Activity-Based Costing

Answer

Standard Costing

Question 4

A flexible budget differs from a static budget primarily because it:

Accepted Answer

Adjusts planned amounts based on the actual level of activity achieved

Answer

Includes only fixed costs in its projections

Answer

Is prepared on a monthly rather than annual basis

Answer

Focuses exclusively on capital expenditure planning

Question 5

Return on Investment (ROI) is most commonly calculated as:

Accepted Answer

(Net Profit / Investment Cost) × 100

Answer

Net Income / Total Shareholders' Equity

Answer

Net Profit / Total Revenue

Answer

Operating Income / Total Assets

Question 6

Which of the following best illustrates a sunk cost?

Accepted Answer

Research and development expenditure already paid and non-recoverable

Answer

Projected future maintenance costs on new machinery

Answer

Cost of materials that can be returned to the vendor for a full refund

Answer

Anticipated revenue from launching a new product line

Question 7

The Balanced Scorecard performance management framework evaluates an organization across which four perspectives?

Accepted Answer

Financial, Customer, Internal Processes, and Learning & Growth

Answer

Profitability, Liquidity, Efficiency, and Solvency

Answer

Revenue, Cost, Quality, and Time

Answer

Marketing, Operations, Human Resources, and Finance