Management Accounting - Study Mode
[#396] Quantity or number of units of different products that together make up total sales of company is called
Correct Answer
(A) sales mix
Explanation
Solution: Quantity or number of units of different products that together make up total sales of company is called sales mix. Sales mix is the relative proportion or ratio of a business's products that are sold. Sales mix is important because a company's products usually have different degrees of profitability. Sales mix also applies to service businesses since the services provided will likely have different levels of profitability.
[#397] In cost accounting, financial way of charging price for product above cost, of acquiring or producing goods is known as
Correct Answer
(C) Gross margin
Explanation
Solution: In cost accounting, financial way of charging price for product above cost, of acquiring or producing goods is known as Gross margin. Gross margin is a company's net sales revenue minus its cost of goods sold (COGS). In other words, it is the sales revenue a company retains after incurring the direct costs associated with producing the goods it sells, and the services it provides.
[#398] If contribution margin is $3000 and revenues are $9000, then all variable costs will be
Correct Answer
(B) $6,000
Explanation
Solution: Variable costs = Revenue - Contribution margin = $9000 - $3000 = $6,000.
[#399] In monetary terms, an expected value of outcome is classified as
Correct Answer
(D) expected monetary value
Explanation
Solution: In monetary terms, an expected value of outcome is classified as expected monetary value. Expected monetary value (EMV) is a risk management technique to help quantify and compare risks in many aspects of the project.
[#400] All choices for decision that are easily available to managers are classified as
Correct Answer
(B) actions
Explanation
Solution: All choices for decision that are easily available to managers are classified as actions. Action, act, deed mean something done. Action applies especially to the doing, act to the result of the doing.