Correct Answer:
D. Sales minus variable costs
Contribution margin = sales - variable costs; it contributes towards fixed costs and profit.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Contribution margin is calculated as:
Related MCQs
Inherent risk is the susceptibility of an assertion to material misstatement:
A.
After considering all internal controls
B.
Only due to auditor's errors
C.
Before considering any related internal controls
D.
Only in government organizations
Correct answer is:
C. Before considering any related internal controls
Do you agree with this answer?
Tax incidence refers to:
A.
The date on which the tax is due
B.
The rate of tax
C.
Who finally bears the burden of a tax
D.
The number of taxpayers
Correct answer is:
C. Who finally bears the burden of a tax
Do you agree with this answer?
The Public Accounts Committee (PAC) mainly examines:
A.
Election disputes
B.
Foreign policy
C.
Appropriation accounts and audit reports of the Auditor-General
D.
Defense procurement plans before approval
Correct answer is:
C. Appropriation accounts and audit reports of the Auditor-General
Do you agree with this answer?
The three Es of performance auditing are:
A.
Economy, efficiency and effectiveness
B.
Equity, ethics and elections
C.
Estimates, expenses and earnings
D.
Education, employment and environment
Correct answer is:
A. Economy, efficiency and effectiveness
Do you agree with this answer?
Overhead is under-absorbed when:
A.
Actual overhead is less than absorbed overhead
B.
Actual overhead equals absorbed overhead
C.
Actual overhead is greater than absorbed overhead
D.
Budgeted overhead is zero
Correct answer is:
C. Actual overhead is greater than absorbed overhead
Do you agree with this answer?
Who has primary responsibility for the prevention and detection of fraud?
A.
The external auditor only
B.
The shareholders only
C.
The tax authority
D.
Management and those charged with governance
Correct answer is:
D. Management and those charged with governance
Do you agree with this answer?
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