What is the amount of gross profit if the stock turnover ratio is 6 times; average stock is Rs. 8,000 and; selling price is 25% above cost?
A. Rs. 2,000
B. Rs. 4,000
C. Rs. 10,000
D. Rs. 12,000
Answer: Option D
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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