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CMA Inter Marginal Costing — practice questions

Explore 12 free Marginal Costing questions in CMA Inter Cost and Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Marginal Costing questions and exercises with answers

Showing questions 1–12 of 12.

Complete the contribution lineRead the answer and worked solution →Match the CVP measure to its formulaRead the answer and worked solution →Quick: work the break-evenRead the answer and worked solution →True or false: at break-evenRead the answer and worked solution →Contribution is defined asRead the answer and worked solution →Selling price is 30 per unit and variable cost is 15 per unit. The P/V ratio isRead the answer and worked solution →Fixed cost is 1,50,000 and contribution per unit is 15. The break-even point in units isRead the answer and worked solution →Fixed cost is 1,50,000 and contribution per unit is 15. Units needed to earn a profit of 20,000 areRead the answer and worked solution →Margin of safety isRead the answer and worked solution →If the margin of safety is 21.875 per cent of sales, break-even sales are what share of sales?Read the answer and worked solution →A higher contribution to sales ratio implies thatRead the answer and worked solution →At the break-even point,Read the answer and worked solution →

Worked practice questions

Complete the contribution line

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Missing parts
  1. Answer
    minus
    Choices
    1. plus
    2. minus
    3. times
  2. Answer
    minus
    Choices
    1. plus
    2. minus
    3. over
  3. Answer
    fixed
    Choices
    1. variable
    2. fixed
    3. direct
Complete the statement
Contribution = Sales revenue {0} total variable cost. Profit = Contribution {1} {2} cost.
Instructions
Tap a term into each blank to finish the two equations.
_Source: ICAI CA Inter Cost and Management Accounting, Ch14 'Marginal Costing', 14.7.1_

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Match the CVP measure to its formula

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Matching pairs
  1. Left
    Contribution
    Right
    Selling price less variable cost
  2. Left
    P/V ratio
    Right
    Contribution divided by sales, as a percent
  3. Left
    Break-even point
    Right
    Fixed cost over contribution per unit
  4. Left
    Margin of safety
    Right
    Projected sales less break-even sales
Instructions
Tap a measure on the left, then the formula that defines it.
_Source: ICAI CA Inter Cost and Management Accounting, Ch14, 14.7.2 and 14.7.3_

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Quick: work the break-even

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Questions
  1. Question
    Contribution per unit is
    Choices
    1. 30
    2. 45
    3. 15
    Correct choice
    15
  2. Question
    Break-even point in units is
    Choices
    1. 10,000
    2. 5,000
    3. 15,000
    Correct choice
    10,000
  3. Question
    The P/V ratio is
    Choices
    1. 25 per cent
    2. 50 per cent
    3. 75 per cent
    Correct choice
    50 per cent
  4. Question
    Units needed to earn a profit of 20,000 are
    Choices
    1. 10,500
    2. 12,000
    3. 11,334
    Correct choice
    11,334
Instructions
Fixed cost 1,50,000. Selling price 30 per unit. Variable cost 15 per unit.
_Source: ICAI CA Inter Cost and Management Accounting, Ch14, worked illustration (fixed cost 1,50,000; SP 30; VC 15)_

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