Management Accounting MCQs

Gross margin is added to cost of sold goods to calculate

by
A. revenues
B. selling price
C. unit price
D. bundle price
✅ The correct answer is option A.
Gross margin is added to cost of sold goods to calculate revenues. Revenue is the income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to determine net income.

Standard input allows one unit, to be divided by standard cost per output unit for variable direct cost input, to calculate

by
A. standard price per input unit
B. standard price per output unit
C. standard cost per input unit
D. standard cost per output unit
✅ The correct answer is option A.
Standard input allows one unit, to be divided by standard cost per output unit for variable direct cost input, to calculate standard price per input unit. A standard cost is described as a predetermined cost, an estimated future cost, an expected cost, a budgeted unit cost, a forecast cost, or as the “should be” cost.

Static budget amount is subtracted from actual result to calculate

by
A. static budget receipts
B. static budget deviation
C. static budget variance
D. multiple budget variance
✅ The correct answer is option C.
Static budget amount is subtracted from actual result to calculate static budget variance. The static budget is used as the basis from which actual results are compared. The resulting variance is called a static budget variance.