managerial accounting viv

Question 1

The margin of safety percentage is computed as:
A. Break-even sales Total sales.
B. Total sales - Break-even sales.
C. (Total sales - Break-even sales) / Break-even sales.
D. (Total sales - Break-even sales) /Total sales.

Answer 1

D. (Total sales - Break-even sales) /Total sales.

Question 2

The break-even point in unit sales is found by dividing total fixed expenses by: 
A. the contribution margin ratio. 
B. the variable expenses per unit. 
C. the sales price per unit. 
D. the contribution margin per unit.

Answer 2

D. the contribution margin per unit.

Question 3

Unit contribution equation

Answer 3

Sales per unit - Total variable costs per unit