Financial Ratios Analysis MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Financial Ratios Analysis, a fundamental topic in the field of Cost Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Financial Ratios Analysis MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Financial Ratios Analysis mcq questions that explore various aspects of Financial Ratios Analysis problems. Each MCQ is crafted to challenge your understanding of Financial Ratios Analysis principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Cost Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Financial Ratios Analysis MCQs are your pathway to success in mastering this essential Cost Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Financial Ratios Analysis. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Financial Ratios Analysis knowledge to the test? Let's get started with our carefully curated MCQs!

Financial Ratios Analysis MCQs | Page 2 of 5

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Q11.
An effect of fixed cost to change in operating income is classified as

a.

uncertain margin

b.

certain margin

c.

operating margin

d.

operating leverage

Discuss
Answer: (d).operating leverage
Q12.
The target operating income is multiplied to tax rate and then subtracted from target operating income to calculate

a.

target net cost

b.

target net income

c.

target net gain

d.

target net loss

Discuss
Answer: (b).target net income
Q13.
If the gross margin is $6000 and the total revenue is $26000, then the gross margin percentage will be

a.

23.08%

b.

24.08%

c.

25.08%

d.

26.08%

Discuss
Answer: (a).23.08%
Q14.
The fixed cost, and the contribution margin percentage for the bundle are divided to calculate

a.

breakeven costs

b.

breakeven revenues

c.

breakeven units

d.

breakeven sales

Discuss
Answer: (b).breakeven revenues
Q15.
The revenue is $11000 and all the variable cost is $6000, then the contribution margin would be

a.

−$17000

b.

$17,000

c.

$5,000

d.

−$5000

Discuss
Answer: (c).$5,000
Q16.
If the contribution margin of bundle is $4000 and the revenue of the bundle is $16000, then the contribution margin percentage for bundle will be

a.

10%

b.

15%

c.

25%

d.

35%

Discuss
Answer: (c).25%
Q17.
The quantity or number of units of different products that together make up total sales of the company is called

a.

sales mix

b.

product mix

c.

unit mix

d.

quantity mix

Discuss
Answer: (a).sales mix
Q18.
In cost accounting, the financial way of charging price for product above the cost, of acquiring or producing the goods is known as

a.

sales margin

b.

cost margin

c.

Gross margin

d.

income margin

Discuss
Answer: (c).Gross margin
Q19.
If the contribution margin is $3000 and the revenues are $9000, then all the variable costs will be

a.

$12,000

b.

$6,000

c.

−$6000

d.

−$12000

Discuss
Answer: (b).$6,000
Q20.
In monetary terms, an expected value of the outcome is classified as

a.

expected value

b.

expected decision value

c.

expected outcome value

d.

expected monetary value

Discuss
Answer: (d).expected monetary value
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