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Subject - Accounting:

Cost and Management Accounting

MCQ - 168-170

Question:

Contribution Margin Ratio is:

  1. Total contribution Margin/ Sales.
  2. Sales / Contribution Margin per unit.
  3. Fixed cost/ Contribution margin per unit.
  4. Sales / Contribution Margin per unit.

Correct Answer: A

Explanation:

Contribution Margin = sales - variable costs.
Contribution Margin Ratio = (sales - variable costs)/sales.
Contribution margin is the amount generated by sales to cover fixed costs.
The contribution margin ratio indicates the percent of sales available to cover fixed
costs and profits.

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Record Performance

355 MCQ for effective preparation of the test of Cost and Management Accounting of Accounting section.

Read the MCQ statement: Contribution Margin Ratio is: , keenly and apply the method you have learn through the video lessons for Cost and Management Accounting to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 168-170.

How to Answer

Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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