Cost Volume Profit Analysis MCQs

MCQs 1-10

1. Break-even analysis is also called?

2. Break even capacity----------------------?

3. Estimate sales in amount is____________________?

4. To find the break-even in dollars, you have to divide the fixed cost by ____________?

5. The break-even point can be defined as?

6. The break-even point in units is represented by the equation?

7. If actual units produced are lower than the budgeted level of production which of the following types of cost would you expect to be lower than the budget?

8. Costs that do not change when the activity base fluctuates are known as?

9. A company's telephone bill consisting of a Rs. 200 monthly base amount, plus long distance charges, would be classified as a?

10. A company has fixed costs of Rs. 50,000 and variable costs per unit of output of Rs. 8. If its sole product sells for Rs. 18, what is the break-even quantity of output?


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MCQs 11-20

11. Fixed cost per unit increases when?

12. Contribution margin is also known as____________?

13. Contribution margin is the difference between sales and____________?

14. An increase in variable costs?

15. Those cost that have both fixed and variable element are called________________?

16. Following are the uses of CVP analysis except?

17. Which of the following costs would decrease if production levels were increase within the relevant range?

18. The indicator that results in total revenues being equal to total cost is called the?

19. An example of a semi variable cost would be?

20. Which of the following statements hold true for safety stock?


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