Decision Making – Multiple Choice Questions (MCQs)

Please enter your email:

1. Which of the following statement is false?

 
 
 
 
 

2. Which of the following is described as data that are pertinent to a decision?


 
 
 
 
 

3. One of Anil Company’s product has a contribution margin of $50,000 and fixed costs totaling $60,000. If the product is dropped. $40,000 of the fixed costs will continue unchanged. As a result of dropping the product, the company’s operating income should:

 
 
 
 

4. Company B produces 2,000 parts each year that are used in one of its products. The unit cost of producing this part is:

Variable cost: $7.50
Fixed costs: $6.00

The part can be purchased from an outside supplier at $10 per unit. If the part is purchased from the outside supplier, two-thirds of the fixed costs incurred in producing the part can be eliminated. The effect on operating income from purchasing the part would be a:

 
 
 
 

Next Quiz: Pricing – Multiple Choice Questions (MCQs)

1 thought on “Decision Making – Multiple Choice Questions (MCQs)”

  1. Pingback: Cost, Volume and Profit Analysis MCQs - Play Accounting

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top