Correct Answer:
D. Are future costs and differ between alternatives
Only future, differential (avoidable) costs matter for decision making.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Relevant costs are costs that:
Related MCQs
Contribution margin is Rs. 120,000 and operating income is Rs. 30,000. The degree of operating leverage is:
A.
0.25
B.
3
C.
90,000
D.
4
Correct answer is:
D. 4
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A favorable cost variance means that:
A.
Actual cost is higher than standard cost
B.
Actual sales are lower than budgeted sales
C.
Actual cost is lower than standard cost
D.
Standard cost is wrong
Correct answer is:
C. Actual cost is lower than standard cost
Do you agree with this answer?
Under the Constitution of Pakistan, the Auditor-General can be removed from office:
A.
In the like manner and on the like grounds as a judge of the Supreme Court
B.
By any minister
C.
By the Prime Minister alone
D.
By the Chief Secretary
Correct answer is:
A. In the like manner and on the like grounds as a judge of the Supreme Court
Do you agree with this answer?
Fixed costs are Rs. 90,000 and the contribution margin ratio is 30%. The break-even sales value is:
A.
Rs. 270,000
B.
Rs. 300,000
C.
Rs. 120,000
D.
Rs. 900,000
Correct answer is:
B. Rs. 300,000
Do you agree with this answer?
Under IFRS 15, revenue is recognized when:
A.
A performance obligation is satisfied by transferring control of goods or services to the customer
B.
A contract is signed
C.
Cash is received in all cases
D.
The invoice is printed
Correct answer is:
A. A performance obligation is satisfied by transferring control of goods or services to the customer
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A master budget is:
A.
A budget for the sales department only
B.
A budget prepared after the year ends
C.
A record of actual results
D.
A comprehensive budget summarizing all functional budgets, including budgeted financial statements
Correct answer is:
D. A comprehensive budget summarizing all functional budgets, including budgeted financial statements
Do you agree with this answer?
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