Match the items of List-I with those of List-II and indicate the correct canswer:
| List-I | List-II |
| a. Postage stamp pricing | 1. Equality of marginal and average cost |
| b. Loss leader | 2. Constant average and marginal cost |
| c. Economic capacity | 3. Product line pricing |
| d. Reserve capacity | 4. Differential pricing |
A. a-3. b-4, c-2, d-1
B. a-4, b-3, c-1, d-2
C. a-2, b-1, c-3, d-4
D. a-1, b-2, c-4, d-3
Answer: Option B
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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