What is the amount of fixed cost if the margin of safety is Rs. 80,000 profit is Rs. 20,000, and sales is Rs. 3,00,000?
A. Rs. 1,00,000
B. Rs. 75,000
C. Rs. 55,000
D. Rs. 20,000
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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