Cost, Volume, and Profit Analysis MCQs

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on November 16, 2021

1. If contribution margin is positive?

2. At the breakeven point:

3. A complete CVP graph will show that profit or loss at any level of sales is measured by:

4. Contribution margin ratio is:

5. The impact on net operating income of any given dollar change in total sales can be computed by applying which ratio to the dollar change?

6. The Hino Corporation has a breakeven point when sales are $160,000 and variable costs at that level of sales are $100,000. How much would contribution margin increase or decrease, if variable expenses dropped by $20,000?

7. Which of the following represents the CVP equations?

8. Margin of safety is a term best described as the excess of:


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True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.

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