Question 1
A product sells for $50 per unit with variable cost of $30 per unit and total fixed costs of $120,000. How many units must be sold to break even?
Correct Answer:
6,000 units
Question 2
Under activity-based costing (ABC), what is the primary basis for assigning overhead costs to products?
Correct Answer:
Cost drivers that reflect the activities consumed
Question 3
A company is deciding whether to accept a one-off special order. Which of the following costs is NOT relevant to the decision?
Correct Answer:
Allocated head-office fixed overhead that will not change
Question 4
A firm has a contribution margin ratio of 40% and fixed costs of $200,000. What sales revenue is required to achieve a target profit of $80,000?
Correct Answer:
$$700,000
Question 5
Which costing method treats only variable manufacturing costs as product costs and expenses fixed manufacturing overhead in the period incurred?
Correct Answer:
Variable (marginal) costing
Question 1
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About this Exam

Prepare with the CA ANZ Core 5 Practice Questions - CA Program Core 5 Strategy and Business Performance Exam practice quiz. This question bank includes 100 questions covering cost, costs, variance, fixed, and product. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CA ANZ Core 5 Practice Questions - CA Program Core 5 Strategy and Business Performance Exam

This practice set contains 100 questions from the matching question bank and focuses on cost, costs, variance, fixed, and product. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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