Correct Answer:
A. 40%
CM = 200,000 - 120,000 = 80,000. CM ratio = 80,000 / 200,000 = 40%.
November 13, 2026 · Accounting and Finance MCQs, Cost & Management Accounting MCQs
Sales are Rs. 200,000 and variable costs are Rs. 120,000. The contribution margin ratio is:
Related MCQs
Performance-based (results-oriented) budgeting:
A.
Lists expenditure by input only
B.
Links funding to outputs and outcomes
C.
Ignores results
D.
Is prepared after the fiscal year
Correct answer is:
B. Links funding to outputs and outcomes
Do you agree with this answer?
According to IAS 2, inventories are measured at:
A.
The higher of cost and selling price
B.
Selling price always
C.
The lower of cost and net realizable value
D.
Replacement cost only
Correct answer is:
C. The lower of cost and net realizable value
Do you agree with this answer?
A prepaid expense is shown in the statement of financial position as:
A.
A current liability
B.
A current asset
C.
Equity
D.
Revenue
Correct answer is:
B. A current asset
Do you agree with this answer?
The ability-to-pay principle of taxation says that:
A.
People should pay tax according to benefits received
B.
Everyone pays the same amount
C.
People with higher income or wealth should pay more tax
D.
Only businesses pay tax
Correct answer is:
C. People with higher income or wealth should pay more tax
Do you agree with this answer?
Expenditure charged upon the Federal Consolidated Fund (Article 81) is:
A.
Voted separately by the Senate
B.
Free of any audit
C.
Paid only from provincial funds
D.
Not submitted to a vote in the National Assembly, though it may be discussed
Correct answer is:
D. Not submitted to a vote in the National Assembly, though it may be discussed
Do you agree with this answer?
Surrender of savings means that:
A.
Funds are spent quickly at year end
B.
Departments keep unspent money for the next year
C.
Unspent funds that will not be needed are returned to the government before the end of the fiscal year
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Savings are invested in bonds
Correct answer is:
C. Unspent funds that will not be needed are returned to the government before the end of the fiscal year
Do you agree with this answer?
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