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- Subject
- Cost Volume Profit Analysisaccounting-mcqs › cost-accounting-mcqs › cost-volume-profit-analysis
- Published
- 8 May 2023
- Last updated
- 28 May 2026
Which financial metric is determined by deducting variable costs from fixed costs?
Multiple choice question for Cost Volume Profit Analysis. Select an option, then review the explanation below.
Explanation
Operating income is calculated by subtracting variable costs from fixed costs, reflecting the profit generated from core business operations.
More Cost Volume Profit Analysis MCQs
Practice related questions from the same subject.
- 1.What is obtained when the fixed costs are divided by the contribution margin per unit?
- 2.Given a contribution margin ratio of 30% and a selling price of $5,000, what is the contribution margin amount for each unit?
- 3.Given a contribution margin of $13,000 and total variable costs amounting to $7,000, what is the total revenue?
- 4.Given a selling price of $5000 and a contribution margin per unit of $1000, what is the contribution margin percentage?
- 5.Given a revenue of $15,000, variable costs totaling $5,000, and fixed costs amounting to $2,000, what is the operating income?