Question

8.Contribution margin is the amount of revenue remaining after deducting a cost of goods sold b. fbxed costs c variable costs d contra-revenue 9. Moonwalker's CVP income statement included sales of 4,000 units, a selling price of $100. variable expenses of $60 per unit, and fixed expenses of $88,000. Contribution margin is a. $400,000 b. $240,000 C. $160,000 d. $72,000 10. Moonwalker's CVP income statement included sales of 4.000 units, a selling price of $100, variable expenses of $60 per unit, and fixed expenses of $88,000. Net income is a $400,000 b. $160.000 c. $152,000. d. $72,000. 11. A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to a. assign responsibility for the decision. b. provide relevant revenue and cost data about each course of action c. determine the amount of money that should be spent on a project d. decide which actions that management should consider. Which of the following stages of the management decision-making process is improperly sequenced? a. Evaluate possible courses of action → Make decision. b. Assign responsibility for the decision → Identify the problem. c. Identify the problem → Determine possible courses of action. d. Assign responsibility for decision → Determine possible courses of action. 12. 13. Ini Internal reports that review the actual impact of decisions are prepared by a. department heads. b. the controller c. management accountants. d. factory workers. 14. Which of the following steps in the management decision-making process does not generally involve the managerial accountant? a. Determine possible courses of action b. Make the appropriate decision based on relevant data C Prepare internal reports that review the impact of decisions d. None of these Which is the first step in the management decision-making process? a. Determine and evaluate possible courses of action. b. Review results of the decision. c. Identify the problem and assign responsibility. d. Make a decision. 15.

Answer 1

Ans. 8	Option C   Variable costs.
	Contribution margin is the difference between revenue and variable costs.
Ans. 9	Option C   $160,000
	Contribution margin per unit = Selling price - Variable cost
	$100 - $60   =   $40 per unit
	Contribution margin = Contribution margin per unit * Units sold
	$40 * 4,000   =   $160,000
Ans. 10	Option   D    $72,000
	Contribution margin per unit = Selling price - Variable cost
	$100 - $60   =   $40 per unit
	Contribution margin = Contribution margin per unit * Units sold
	$40 * 4,000   =   $160,000
	Net income    =   Contribution margin - Fixed expenses
	$160,000 - $88,000
	$72,000
Ans. 11	Option B
	This is the main resposibility of accounting department to provide the relevant revenue
	and cost data about each course of action.