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B Com Exam  >  B Com Test  >  Cost Management  >  Test: Decision Making - B Com MCQ

Decision Making - Free MCQ Practice Test with solutions, B Com Cost Management


MCQ Practice Test & Solutions: Test: Decision Making (10 Questions)

You can prepare effectively for B Com Cost Management with this dedicated MCQ Practice Test (available with solutions) on the important topic of "Test: Decision Making". These 10 questions have been designed by the experts with the latest curriculum of B Com 2026, to help you master the concept.

Test Highlights:

  • - Format: Multiple Choice Questions (MCQ)
  • - Duration: 10 minutes
  • - Number of Questions: 10

Sign up on EduRev for free to attempt this test and track your preparation progress.

Test: Decision Making - Question 1
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According to marginal costing, what is the formula for contribution per unit?

Detailed Solution: Question 1

Contribution per unit is calculated by subtracting the variable cost per unit from the sale per unit. This represents the amount that contributes towards covering fixed costs and generating profit.

Test: Decision Making - Question 2
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What is the formula for calculating total profit or loss in marginal costing?

Detailed Solution: Question 2

Total profit or loss is determined by subtracting the total fixed costs from the total contribution. This gives an indication of the overall financial performance of the company.

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Test: Decision Making - Question 3
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What is the formula for calculating the profit volume ratio in marginal costing?

Detailed Solution: Question 3

The profit volume ratio is calculated by dividing the contribution by the sale and multiplying it by 100. This ratio indicates the percentage of each sale that contributes towards profit.

Test: Decision Making - Question 4
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How is the break-even point in units calculated in marginal costing?

Detailed Solution: Question 4

The break-even point in units is determined by dividing the total fixed expenses by the contribution per unit. This gives the number of units that need to be sold in order to cover all fixed costs.

Test: Decision Making - Question 5
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What is the break-even point in sales value calculated in marginal costing?

Detailed Solution: Question 5

The break-even point in sales value is calculated by multiplying the break-even point in units by the selling price per unit. This gives the total sales value required to cover all fixed costs.

Test: Decision Making - Question 6
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What is the formula for calculating the break-even point at a specific net profit margin in marginal costing?

Detailed Solution: Question 6

The break-even point at a specific net profit margin is determined by dividing the total contribution by the contribution per unit. This gives the number of units that need to be sold in order to earn the desired net profit margin.

Test: Decision Making - Question 7
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What is the make-or-buy decision?

Detailed Solution: Question 7

The make-or-buy decision is the strategic choice made by a company to either produce an item internally (in-house) or purchase it from an outside supplier. It involves evaluating factors such as cost, capacity, expertise, and strategic alignment.

Test: Decision Making - Question 8
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What are the factors that favor making a part in-house in the make-or-buy decision?

Detailed Solution: Question 8

Factors that favor making a part in-house include cost considerations (lower cost to make the part), the desire to integrate plant operations, and the ability to have better quality control over the production process.

Test: Decision Making - Question 9
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What are the factors that may influence firms to buy a part externally in the make-or-buy decision?

Detailed Solution: Question 9

Factors that may influence firms to buy a part externally include cost considerations (lower cost to buy the part), limited production facilities or insufficient capacity to produce the part in-house, and the desire to maintain a multiple-source policy for risk management purposes.

Test: Decision Making - Question 10
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What is the break-even point in marginal costing?

Detailed Solution: Question 10

The break-even point is the level of sales at which the company neither makes a profit nor incurs a loss. It is the point where total sales equal total costs.

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About this B Com Practice Test

This test contains 10 MCQs on Decision Making with detailed solutions for each question. It is part of the Cost Management course on EduRev, designed to align with the current B Com syllabus. Each solution explains not just the correct answer but also gives you an understanding of the topic — not just to attempt the question but also help you prepare for the exam with practice.

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If you found this Decision Making MCQ Test helpful, you can further enhance your B Com preparation with in-depth courses on EduRev, for all the subjects and topics available in Cost Management course. The course offers:
  • Video Lectures: covering all the topics of Cost Management
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  • MCQ Test: variety of questions as per the pattern of B Com exam
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