Question 1

Which are a measure of the amount of resources used or consumed in providing a service, not cashout flows?

Options :

A : Operating income

B : Credit

C : Revenue

D : Expense

Answer: D

Question 2

The point where total revenues equal total costs is called:

Options :

A : Cope point

B : Break-even point

C : Get-by point

D : Equivalent point

Answer: B

Question 3

To indicate the desired level of performance an organization wishes to compare itself with, the

organizations normally uses a process called:

Options :

A : Standardization

B : Capital structure ratios

C : Benchmark

D : Point of reference

Answer: C

Question 4

____________ represents the amount that a service contributes toward covering all other costs after

it has covered the costs that are solely because the service is offered and would not be there if the

service were dropped.

Options :

A : Margin cost

B : Service cost

C : Product margin rule

D : Product margin

Answer: D

Question 5

Activities that provide guidance and feedback to keep organization within its budget once it has been approved and its being implemented refers to:

Options :

A : Controlling activities

B : Feedback

C : Strategic activities

D : None of the above

Answer: A