Which of the following statements related to Contribution Analysis are ture? A. If contribution is zero, there is loss equal to fixed costs B. If contribution is negative, loss is less than fixed costs C. If contribution is positive and more than fixed cost there will be profit. D. All of the above

Which of the following statements related to Contribution Analysis are ture? A. If contribution is zero, there is loss equal to fixed costs
B. If contribution is negative, loss is less than fixed costs
C. If contribution is positive and more than fixed cost there will be profit. D. All of the above
by

1 Answer

Answer :

A. If contribution is zero, there is loss equal to fixed costs
by

Related questions

When contribution is positive but equal to fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. There will be neither profit not loss

Description : When contribution is positive but equal to fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. There will be neither profit not loss

Last Answer : D. There will be neither profit not loss

When contribution is negative but less than fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. All of above are false

Description : When contribution is negative but less than fixed cost, A. There is loss equal to fixed costs B. There is loss more than fixed costs C. There will be loss less than fixed costs D. All of above are false

Last Answer : C. There will be loss less than fixed costs

Which of the following are characteristics of B.E.P? A. There is no loss and no profit to the firm. B. Total revenue is equal to total cost. C. Contribution is equal to fixed cost. D. All of the above.

Description : Which of the following are characteristics of B.E.P? A. There is no loss and no profit to the firm. B. Total revenue is equal to total cost. C. Contribution is equal to fixed cost. D. All of the above.

Last Answer : D. All of the above.

Which of the following statements are true? A. Contribution doesn’t include fixed cost whereas profit includes fixed cost. B. Contribution is not based on the concept of marginal cost. C. Contribution above breakeven point becomes profit. D. All of the above

Description : Which of the following statements are true? A. Contribution doesn’t include fixed cost whereas profit includes fixed cost. B. Contribution is not based on the concept of marginal cost. C. Contribution above breakeven point becomes profit. D. All of the above

Last Answer : C. Contribution above breakeven point becomes profit.

Which of the following statements are true? (a) Marginal costing is not an independent system of costing. (b) In marginal costing all elements of cost are divided into fixed and variable components. (c) In marginal costing fixed costs are treated as product cost. (d) Marginal costing is not a technique of cost analysis. A. A and B B. B and C C. A and D D. B and D

Description : Which of the following statements are true? (a) Marginal costing is not an independent system of costing. (b) In marginal costing all elements of cost are divided into fixed and variable components. (c) In marginal costing fixed ... cost analysis. A. A and B B. B and C C. A and D D. B and D

Last Answer : A. A and B

While computation of profit in marginal costing A. Total marginal cost is deducted from total sales revenues B. Total marginal cost is added to total sales revenues C. Fixed cost is added to contribution D. None of the above

Description : While computation of profit in marginal costing A. Total marginal cost is deducted from total sales revenues B. Total marginal cost is added to total sales revenues C. Fixed cost is added to contribution D. None of the above

Last Answer : A. Total marginal cost is deducted from total sales revenues

Direct material cost + direct labor cost + other variable costs is equal to… A. Contribution B. Total cost C. Marginal cost D. Sales

Description : Direct material cost + direct labor cost + other variable costs is equal to… A. Contribution B. Total cost C. Marginal cost D. Sales

Last Answer : A sales forecast is only......

In context of net operating profit, which of the following statements are true? A. If all costs are variable, the amount of profit obtained in marginal costing and absorption costing will be same. B. If the volume of sales and output is equal in a period, profit will be same in absorption costing and marginal costing. C. Both a and b D. None of the above

Description : In context of net operating profit, which of the following statements are true? A. If all costs are variable, the amount of profit obtained in marginal costing and absorption costing will be same. B. If ... same in absorption costing and marginal costing. C. Both a and b D. None of the above

Last Answer : C. Both a and b

Cost behaviour analysis is a study of how a firm's costs A. relate to competitors' costs B. relate to general price level changes C. respond to changes in activity levels within the company D. respond to changes in the gross national product

Description : Cost behaviour analysis is a study of how a firm's costs A. relate to competitors' costs B. relate to general price level changes C. respond to changes in activity levels within the company D. respond to changes in the gross national product

Last Answer : C. respond to changes in activity levels within the company

Marginal cost is computed as A. Prime cost + All Variable overheads B. Direct material + Direct labour + Direct Expenses + All variable overheads C. Total costs – All fixed overheads D. All of the above

Description : Marginal cost is computed as A. Prime cost + All Variable overheads B. Direct material + Direct labour + Direct Expenses + All variable overheads C. Total costs – All fixed overheads D. All of the above

Last Answer : A. Prime cost + All Variable overheads

Profit-Volume ratio is also known as A. Contribution ratio B. Contribution/Sales ratio C. Marginal Income percentage D. All of the above

Description : Profit-Volume ratio is also known as A. Contribution ratio B. Contribution/Sales ratio C. Marginal Income percentage D. All of the above

Last Answer : D. All of the above

Under absorption costing, managerial decisions are based on A. Profit B. Contribution C. Profit volume ratio D. None of the above

Description : Under absorption costing, managerial decisions are based on A. Profit B. Contribution C. Profit volume ratio D. None of the above

Last Answer : A. Profit

Contribution margin center is also known as A. Expense center B. Profit center C. Investment center D. All of the above

Description : Contribution margin center is also known as A. Expense center B. Profit center C. Investment center D. All of the above

Last Answer : B. Profit center

Which of the following statements is true A. Positive stress is short-term B. Negative stress can be short or long-term C. Negative stress can lead to mental as well as physical problems D. Negative stress is perceived within our coping abilities

Description : Which of the following statements is true A. Positive stress is short-term B. Negative stress can be short or long-term C. Negative stress can lead to mental as well as physical problems D. Negative stress is perceived within our coping abilities

Last Answer : D. Negative stress is perceived within our coping abilities

Sales for desired profit is measured as A. (Fixed cost + profit)/ (P/V Ratio) B. (Fixed cost + profit) * (P/V Ratio) C. (Fixed cost - profit)/ (P/V Ratio) D. None of the above

Description : Sales for desired profit is measured as A. (Fixed cost + profit)/ (P/V Ratio) B. (Fixed cost + profit) * (P/V Ratio) C. (Fixed cost - profit)/ (P/V Ratio) D. None of the above

Last Answer : A. (Fixed cost + profit)/ (P/V Ratio)

Which of the following are limitations of break-even analysis? A. Static concept B. Capital employed is taken into account. C. Limitation of non-linear behaviour of costs D. Limitation of presence of perfect competition

Description : Which of the following are limitations of break-even analysis? A. Static concept B. Capital employed is taken into account. C. Limitation of non-linear behaviour of costs D. Limitation of presence of perfect competition

Last Answer : A. Static concept

Which of the following statements are true? A. P/V Ratio can never be used to measure break-even point B. Higher the P/V ratio less will be the profit and vice versa C. Concept of P/V ratio is also used to determine profit at a given volume of sales D. All of the above

Description : Which of the following statements are true? A. P/V Ratio can never be used to measure break-even point B. Higher the P/V ratio less will be the profit and vice versa C. Concept of P/V ratio is also used to determine profit at a given volume of sales D. All of the above

Last Answer : C. Concept of P/V ratio is also used to determine profit at a given volume of sales

Under High and Low Point method, the output at two different levels is compared with the amount of __________ incurred at these two points. A. Total fixed costs B. Total costs C. Total fixed costs D. None of the above

Description : Under High and Low Point method, the output at two different levels is compared with the amount of __________ incurred at these two points. A. Total fixed costs B. Total costs C. Total fixed costs D. None of the above

Last Answer : B. Total costs

Breakeven point represents the condition, when the company runs under no profit no loss condition. In break even analysis, total cost comprises of fixed cost (A) Only (B) Plus variable cost (C) Plus overhead cost (D) Plus selling expenses

Description : Breakeven point represents the condition, when the company runs under no profit no loss condition. In break even analysis, total cost comprises of fixed cost (A) Only (B) Plus variable cost (C) Plus overhead cost (D) Plus selling expenses

Last Answer : Option B

Using equation method, Break-even point is calculated as A. Sales = Variable expenses + Fixed expenses + Profit B. Sales = Variable expenses + Fixed expenses - Profit C. Sales = Variable expenses - Fixed expenses + Profit D. None of the above

Description : Using equation method, Break-even point is calculated as A. Sales = Variable expenses + Fixed expenses + Profit B. Sales = Variable expenses + Fixed expenses - Profit C. Sales = Variable expenses - Fixed expenses + Profit D. None of the above

Last Answer : A. Sales = Variable expenses + Fixed expenses + Profit

Which of the following statements are true about responsibility accounting? A. Responsibility accounting results in inter-departmental conflicts B. In responsibility center more focus is paid on products, processes or jobs C. No focus is paid on controlling costs D. None of the above

Description : Which of the following statements are true about responsibility accounting? A. Responsibility accounting results in inter-departmental conflicts B. In responsibility center more focus is paid on products, processes or jobs C. No focus is paid on controlling costs D. None of the above

Last Answer : A. Responsibility accounting results in inter-departmental conflicts

Break-even point in Rs is Calculated as _________ a) Fixed cost/ contribution per unit b) Fixed cost / p/ V ratio c) Fixed cost + desired profit/ Contribution per unit d) Fixed cost + desired profit/ P/V ratio.

Description : Break-even point in Rs is Calculated as _________ a) Fixed cost/ contribution per unit b) Fixed cost / p/ V ratio c) Fixed cost + desired profit/ Contribution per unit d) Fixed cost + desired profit/ P/V ratio.simpl

Last Answer : b) Fixed cost / p/ V ratio

If the activity level increases 10%, total variable costs will A. remain the same B. increase by more than 10% C. decrease by less than 10% D. increase by10%

Description : If the activity level increases 10%, total variable costs will A. remain the same B. increase by more than 10% C. decrease by less than 10% D. increase by10%

Last Answer : D. increase by10%

Cash Flow Statement is prepared from A. Profit and loss account B. Balance Sheet C. Additional Information D. All of the above

Description : Cash Flow Statement is prepared from A. Profit and loss account B. Balance Sheet C. Additional Information D. All of the above

Last Answer : D. All of the above

Profit and Loss Account debit side includes A. Salary B. Discount allowed C. Postage & telegram D. All of the above

Description : Profit and Loss Account debit side includes A. Salary B. Discount allowed C. Postage & telegram D. All of the above

Last Answer : D. All of the above

The crossover chart for l t for location break-even analysis shows where a. fixed costs are equal for alternative locations b. variable costs are equal for alternative variable costs are equal for alternative locations locations c. total costs are equal for alternative locations d. fixed costs equal variable

Description : The crossover chart for l t for location break-even analysis shows where a. fixed costs are equal for alternative locations b. variable costs are equal for alternative variable costs are ... locations locations c. total costs are equal for alternative locations d. fixed costs equal variable

Last Answer : c. total costs are equal for alternative locations

Which of the following are techniques, tools or methods of analysis and interpretation of financial statements? A. Ratio Analysis B. Average Analysis C. Trend Analysis D. All of the above

Description : Which of the following are techniques, tools or methods of analysis and interpretation of financial statements? A. Ratio Analysis B. Average Analysis C. Trend Analysis D. All of the above

Last Answer : D. All of the above

Management accounting involves A. Preparation of financial statements B. Analysis and interpretation of data C. Recording of transactions D. None of the above

Description : Management accounting involves A. Preparation of financial statements B. Analysis and interpretation of data C. Recording of transactions D. None of the above

Last Answer : B. Analysis and interpretation of data

A firm that bases its price on how it thinks the competitors will price, rather than on its own costs or demand, to win a contract is most likely using A. Going-rate pricing B. Cost-plus pricing C. Perceived-value pricing D. Sealed-bid pricing

Description : A firm that bases its price on how it thinks the competitors will price, rather than on its own costs or demand, to win a contract is most likely using A. Going-rate pricing B. Cost-plus pricing C. Perceived-value pricing D. Sealed-bid pricing

Last Answer : C. Perceived-value pricing

In D.C. machines, ir order to prevent excessive distortion of field form by the armature reaction, the field mmf must be made (a) equal to that of armature mmf (b) less in comparison with the arma¬ture mmf (c) large in comparison with the arma-ture mmf (d) none of the above

Description : In D.C. machines, ir order to prevent excessive distortion of field form by the armature reaction, the field mmf must be made (a) equal to that of armature mmf (b) less in comparison with the arma¬ture mmf (c) large in comparison with the arma-ture mmf (d) none of the above

Last Answer : (c) large in comparison with the arma-ture mmf

The minimum amount of------------------,irrespective of such private participation,could be specified at a minimum 17.5 per cent of project costs by lending institutions. A. bank loans B. promotors contribution C. fixed capital D. working capital

Description : The minimum amount of------------------,irrespective of such private participation,could be specified at a minimum 17.5 per cent of project costs by lending institutions. A. bank loans B. promotors contribution C. fixed capital D. working capital

Last Answer : B. promotors contribution

The breakeven chart helps the management in… A. Forecasting costs and profits B. Cost control C. Long term planning and growth D. All of the above

Description : The breakeven chart helps the management in… A. Forecasting costs and profits B. Cost control C. Long term planning and growth D. All of the above

Last Answer : D. All of the above

In responsibility cost accounting the costs in focus are A. Controllable costs B. Uncontrollable costs C. Both a and b D. None of the above

Description : In responsibility cost accounting the costs in focus are A. Controllable costs B. Uncontrollable costs C. Both a and b D. None of the above

Last Answer : A. Controllable costs

A Unit Price (UP) contract provides: 1. a reimbursement of allowable costs plus a fixed fee which is paid proportionately as the contract progresses 2. a reimbursement of allowable cost of services performed plus an agreed upon percentage of the estimated cost as profit 3. the supplier with a fixed price for delivered performance plus a predetermined fee for superior performance 4. a fixed price where the supplier agrees to furnish goods and services at unit rates and the final price is dependent on the quantities needed to carry out the work.

Description : A Unit Price (UP) contract provides: 1. a reimbursement of allowable costs plus a fixed fee which is paid proportionately as the  contract progresses  2. a reimbursement of allowable cost of services ... unit rates and the  final price is dependent on the quantities needed to carry out the work.

Last Answer : 4. a fixed price where the supplier agrees to furnish goods and services at unit rates and the  final price is dependent on the quantities needed to carry out the work

Profits related to a new product in its introductory stage of profit related to new product A.negative B.positive C.higher D.declining Answer: A

Description : Profits related to a new product in its introductory stage of profit related to new product A.negative B.positive C.higher D.declining Answer: A

Last Answer : A.negative

Which of the following statements is true A. Habitual behaviour patterns like over scheduling, procrastination, etc. Can cause negative stress B. Thoughts like fear, worrying about future etc. can cause negative stress C. Both ‘A’ & ‘B’ are true D. None of the above

Description : Which of the following statements is true A. Habitual behaviour patterns like over scheduling, procrastination, etc. Can cause negative stress B. Thoughts like fear, worrying about future etc. can cause negative stress C. Both ‘A’ & ‘B’ are true D. None of the above

Last Answer : C. Both ‘A’ & ‘B’ are true

Which of the following statements is true about stress management A. Stress management is learning about the connection between mind and body B. Stress management helps us control our health in a positive sense C. Stress management teaches us to avoid all kinds of stress D. Only ‘A’ & ‘B’ are right

Description : Which of the following statements is true about stress management A. Stress management is learning about the connection between mind and body B. Stress management helps us control our health in a positive sense C. ... management teaches us to avoid all kinds of stress D. Only A' & B' are right

Last Answer : D. Only ‘A’ & ‘B’ are right

Intermediaries sponsor their own brands because ________. A. private-label brands sell at higher volumes B. private-label brands are recognizable to the consumer as being widely available from many different retailers C. private-label brands are always of better quality than national brands D. private-label brands can be sold at lower prices yet generate a higher profit margin because of their lower cost structure

Description : Intermediaries sponsor their own brands because ________. A. private-label brands sell at higher volumes B. private-label brands are recognizable to the consumer as being widely available from many ... sold at lower prices yet generate a higher profit margin because of their lower cost structure

Last Answer : D. private-label brands can be sold at lower prices yet generate a higher profit margin because of their lower cost structure

The factor which limits the volume of output of different products of an understanding at a particular point of time is known as… A. Key factor B. BEP C. Contribution D. None

Description : The factor which limits the volume of output of different products of an understanding at a particular point of time is known as… A. Key factor B. BEP C. Contribution D. None

Last Answer : A. Key factor

Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%. A. Rs 60,000 B. Rs 70,000 C. Rs 30,000 D. None of the above

Description : Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%. A. Rs 60,000 B. Rs 70,000 C. Rs 30,000 D. None of the above

Last Answer : A. Rs 60,000

Contribution is also known as A. Contribution margin B. Net Margin C. Both a and b D. None of the above

Description : Contribution is also known as A. Contribution margin B. Net Margin C. Both a and b D. None of the above

Last Answer : A. Contribution margin

The corrective actions after the analysis of variances has to be taken by A. Cost accountant B. Management C. Both a and b D. None of the above

Description : The corrective actions after the analysis of variances has to be taken by A. Cost accountant B. Management C. Both a and b D. None of the above

Last Answer : B. Management

Full employment is the level at which there is A. Zero unemployment B. Normal rate of unemployment C. Less supply of labor D. Demand for goods is less than supply.

Description : Full employment is the level at which there is A. Zero unemployment B. Normal rate of unemployment C. Less supply of labor D. Demand for goods is less than supply.

Last Answer : C. Less supply of labor

Angle of incidence is the angle at which A. Total revenue line intersects the total cost line B. Total cost line intersects the variable cost line C. Variable cost line intersects fixed cost line D. Fixed cost line intersects total revenue line

Description : Angle of incidence is the angle at which A. Total revenue line intersects the total cost line B. Total cost line intersects the variable cost line C. Variable cost line intersects fixed cost line D. Fixed cost line intersects total revenue line

Last Answer : A. Total revenue line intersects the total cost line

Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost is Rs 5,000. What is break-even point? A. 500 units B. 1,000 units C. 1,250 units D. None of the above

Description : Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost is Rs 5,000. What is break-even point? A. 500 units B. 1,000 units C. 1,250 units D. None of the above

Last Answer : the following instances are related to the production of a company during the month of August 2014 . Direct material 1200,wages 1200, factory rent 1000, depreciation of machinery 1000, supervisor salary ... selling expenses 2500. Prepare a cosy sheet and shiw the% of various costs on total costs.

Fixed cost per unit increases when: A. Production volume decreases B. Production volume increases C. Variable cost per unit decreases D. None of the above

Description : Fixed cost per unit increases when: A. Production volume decreases B. Production volume increases C. Variable cost per unit decreases D. None of the above

Last Answer : A. Production volume decreases

Variable cost per unit: A. Remains fixed B. Fluctuates with the volume of production C. Varies in sympathy with ‘the volume of sales. D. None of the above

Description : Variable cost per unit: A. Remains fixed B. Fluctuates with the volume of production C. Varies in sympathy with ‘the volume of sales. D. None of the above

Last Answer : B. Fluctuates with the volume of production

Price is the only element in the marketing mix that produces: A. Fixed cost B. Expense C. Variable cost D Revenue

Description : Price is the only element in the marketing mix that produces: A. Fixed cost B. Expense C. Variable cost D Revenue

Last Answer : D Revenue

Which of the following costs is related to marginal cost? (1) Variable Cost (2) Implicit Cost (3) Prime Cost (4) Fixed Cost

Description : Which of the following costs is related to marginal cost? (1) Variable Cost (2) Implicit Cost (3) Prime Cost (4) Fixed Cost

Last Answer : (1) Variable Cost Explanation: In economics, marginal cost is the change in the total cost that arises when the quantity produced is Incremented by one unit. That is, it is the cost of producing one more ... in the short run. It is only the variable costs that vary with output in the short run.

In estimation of cost functions, variations in a single activity level represents the A. related total costs B. related fixed cost C. related variable cost D. related per unit cost

Description : In estimation of cost functions, variations in a single activity level represents the A. related total costs B. related fixed cost C. related variable cost D. related per unit cost

Last Answer : A. related total costs