- The term contribution refers to ____
- The difference between selling price and fixed cost
- The difference between selling price and variable cost
- Profit
- None of these
- Marginal costing technique helps the management in deciding _____
- Pricing
- To accept fresh orders at low price
- To make or buy
- All of the above
- The other name of marginal costing is _______
- Direct costing
- Variable costing
- Incremental costing
- All of the above
- The term gross margin refers to _______
- Total profit
- Contribution
- Profit before tax
- Profit before interest and tax
- Sales Rs. 100000, variable cost Rs. 50000 and net profit ratio is 10% on sales, find out fixed cost.
- 50000
- 40000
- 20000
- The data inadequate
- Profit volume ratio establishes the relationship between _______
- Contribution and profit
- Fixed cost and contribution
- Profit and sales
- Contribution and sales value
- Contribution/sales is equal to _______
- P/V ratio
- Net profit ratio
- BEP
- EPS
- The profit of an undertaking is affected by _______
- Selling price of the products
- Volume of sales
- Variable cost per unit and total fixed cost
- All of the above
- The profit at which total revenue is equal to total cost is called ______
- BEP
- Margin of safety
- Break even analysis
- None
- The break even chart helps the management in ______
- Forecasting costs and profits
- Cost control
- Long term planning and growth
- All of the above
- Break even chart presents only cost volume profits. It ignores other considerations such as ________
- Capital
- Marketing aspects
- Government policy
- All of the above
- Expenses that do not vary with the volume of production are known as _______
- Fixed expenses
- Variable expenses
- Semi‐variable expenses
- None
- ________ is the excess of sales over the break even sales.
- Actual sales
- Total sales
- Margin of safety
- Net sales
- __________ indicates the extent of which the sales can be reduced without resulting in loss.
- BEP
- Key factor
- Contribution
- Margin of safety
- The formula for Margin of Safety is one of the following ________
- PV ratio/profit
- Profit/P/v ratio
- Profit/sales
- Contribution/fixed cost
- Margin of safety can be improved by ________
- Increasing production
- Increasing selling price
- Reducing the costs
- All of the above
- If a firm is dealing in several products the________ is calculated.
- Composite BEP
- BEP
- Break even sales
- Cash BEP
- _________ refers to a situation where the costs of operating two alternative plants are equal.
- Simple BEP
- Cost BEP
- Contribution BEP
- None
- The angle formed by the sales line and total cost line at the break even point is known as _________
- Profit variable
- Margin of safety
- Angle of incidence
- None
- A high margin of safety indicates the more actual sales than break even sales.
- True
- False
- The term contribution margin refers to _________
- Marginal income
- Marginal cost
- Gross profit
- Net income
- Overvaluation of stock is practiced on absorption costing technique.
- True
- False
- The BEP decreases if the fixed cost ________
- Increases
- Decreases
- Remains constant
- Inadequate data
- Marginal costing is the most useful technique for the ______
- Shareholders
- Management
- Auditors
- Creditors
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