Match the following.
| List-I | List-II |
| a. Marginal cost | 1. . . . . . . . . = Contribution ÷ Sales |
| b. P/V ratio | 2. Contribution = Selling price - . . . . . . . . |
| c. Profit | 3. . . . . . . . . = Sales (1 - P/V ratio) |
| d. Variable costs | 4. Margin of safety = . . . . . . . . ÷ P/V ratio |
A. a-4, b-3, c-2, d-1
B. a-3, b-1, c-4, d-2
C. a-2, b-1, c-4, d-3
D. a-2, b-3, c-4, d-1
Answer: Option C
Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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