71
Which of the following is correct at break-even point?
A)
Contribution = Fixed cost
B)
Sales revenue = Total cost - Variable cost
C)
Profit = Fixed cost + Variable cost
D)
Sales revenue = Variable cost
Answer & Solution
Answer: Option
A
72
Match the following.
List-I List-II
a. Excess of actual sales over the break-even sales volume
1. Contribution
b. Sum of fixed cost and profit
2. Cost volume profit analysis
c. Break-even chart
3. Unaffected by change in output
d. Break-even point
4. Margin of safety
A)
a-4, b-1, c-2, d-3
B)
a-4, b-3, c-2, d-1
C)
a-4, b-3, c-1, d-2
D)
a-3, b-1, c-4, d-2
Answer & Solution
Answer: Option
A
73
The term 'standard cost' refers to the
A)
average unit cost of product produced in the current period
B)
budgeted unit cost of product produced in a particular period
C)
average unit cost of product produced by other companies
D)
average unit cost of product produced in the previous period
Answer & Solution
Answer: Option
B
74
The concept of budget that requires all levels to work from scratch is
A)
flexible budget
B)
total budget
C)
master budget
D)
zero base budget
Answer & Solution
Answer: Option
D
75
The break-even point in units is calculated using
A)
fixed expenses and the contribution margin ratio
B)
variable expenses and the contribution margin ratio
C)
fixed expenses and the unit contribution margin
D)
variable expenses and the unit contribution margin
Answer & Solution
Answer: Option
C
76
Which part of cost of production report explains the cost incurred during the process?
A)
Cost charge to the department
B)
Quantity schedule
C)
Both A and B
D)
None of the above
Answer & Solution
Answer: Option
C
77
Which of the following gives formula for direct material price variance?
A)
Actual quantity purchased × (Actual rate + Standard rate)
B)
Actual quantity purchased × (Actual rate - Standard rate)
C)
Standard quantity purchased × (Actual rate + Standard rate)
D)
Standard quantity purchased × (Actual rate - Standard rate)
Answer & Solution
Answer: Option
B
78
In increasing production volume situation, the behaviour of fixed cost and variable cost will be
A)
decreases, increases
B)
increase, decreasing
C)
constant, increase
D)
increase, constant
Answer & Solution
Answer: Option
C
79
If total cost of 200 units is Rs. 55,000 and those of 201 units is Rs. 55,030, then upsurge of Rs. 30 in total cost is
A)
marginal cost
B)
prime cost
C)
all variable overheads
D)
none of these
Answer & Solution
Answer: Option
A
80
Match the following.
List-I List-II
a. Classification of costs into fixed and variable costs
1. Contribution
b. Difference between sales and variable costs
2. P/V ratio
c. Both fixed and variable costs are charged to product
3. Marginal costing
d. Relative profitability
4. Absorption costing
A)
a-4, b-3, c-1, d-2
B)
a-3, b-4, c-1, d-2
C)
a-3, b-1, c-4, d-2
D)
a-4, b-3, c-2, d-1
Answer & Solution
Answer: Option
C
