MGT402 Quiz 3 by Iqra Azhar

MGT402 · Quiz No.3 Jan2026 · VU Zone | Iqra Azhar Official · Our Services

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90% To 100% Marks

Q1. While constructing a Break even chart, the gap between sales line and variable cost line shows which of the following?

•  Break even point
•  Fixed cost
•  Variable cost

 Contribution margin Correct

Q2. Amount of Depreciation on fixed assets will be fixed, in nature, if calculated under which one of the following methods?

 Straight line method Correct

•  Sum of years' digits method
•  Reducing balance method
•  Double declining method

Q3. Contribution margin is the result of which of the following two variables?

 Sales and variable costs Correct

•  Variable and fixed costs
•  Sales and Fixed cost
•  Sales and operating profit

Q4. Consider the following data for the month of May: Sales 150 units, Opening units 120 units, Closing 80 units. Based on the data, production in May will have to be?

•  50 units
•  190 units

 110 units Correct

•  150 units

Q5. Which one of the following factors would cause budgeted revenue to be less than the expected demand?

•  Excess capacity exists

 Demand exceeds capacity Correct

•  Excess supply of labor exists