Managerial Accounting test 2 Verified Exam Questions and Answers
Latest update 2026/2027
Question:
The contribution margin is
a.
equal to sales.
b.
the difference between sales and variable costs.
c.
the difference between operating income and margin of safety.
d.
when total sales equals total costs.
e.
the difference between target income and operating income.
Answer:
B The contribution income statement highlights:
gross margin products costs and period costs different product lines
Question:
variable and fixed costs
Answer:
variable and fixed costs The difference between total revenues and total variable costs is called
contribution margin.
True
Question:
False
Answer:
True If variable expenses decrease and the price increases, the break-even point decreases.
True
Question:
False
Answer:
True The impact on a firm's income resulting from a change in the number of units sold can be
assessed by multiplying the unit contribution margin by the change in units sold assuming that fixed
costs remain the same.
True
, Question:
False
Answer:
True If fixed costs increase, the break-even point in units will
a.
remain the same; however, contribution per unit will decrease.
b.
remain the same.
c.
increase.
d.
Question:
decrease.
Answer:
C If variable costs per unit decrease, sales volume at the break-even point will
a.
stay constant.
b.
increase.
c.
double.
d.
Question:
decrease.
Answer:
D
Question:
Which of the following will increase a company's breakeven point? increasing variable cost per unit
increasing contribution margin per unit reducing its total fixed costs increasing the selling price per
unit
Answer:
increasing variable cost per unit The breakeven point in CVP analysis is defined as:
Latest update 2026/2027
Question:
The contribution margin is
a.
equal to sales.
b.
the difference between sales and variable costs.
c.
the difference between operating income and margin of safety.
d.
when total sales equals total costs.
e.
the difference between target income and operating income.
Answer:
B The contribution income statement highlights:
gross margin products costs and period costs different product lines
Question:
variable and fixed costs
Answer:
variable and fixed costs The difference between total revenues and total variable costs is called
contribution margin.
True
Question:
False
Answer:
True If variable expenses decrease and the price increases, the break-even point decreases.
True
Question:
False
Answer:
True The impact on a firm's income resulting from a change in the number of units sold can be
assessed by multiplying the unit contribution margin by the change in units sold assuming that fixed
costs remain the same.
True
, Question:
False
Answer:
True If fixed costs increase, the break-even point in units will
a.
remain the same; however, contribution per unit will decrease.
b.
remain the same.
c.
increase.
d.
Question:
decrease.
Answer:
C If variable costs per unit decrease, sales volume at the break-even point will
a.
stay constant.
b.
increase.
c.
double.
d.
Question:
decrease.
Answer:
D
Question:
Which of the following will increase a company's breakeven point? increasing variable cost per unit
increasing contribution margin per unit reducing its total fixed costs increasing the selling price per
unit
Answer:
increasing variable cost per unit The breakeven point in CVP analysis is defined as:
