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
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
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.
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......
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
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
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
Description : Gross Profit ratio is also termed as A. Gross Profit Margin B. Gross Margin to net sales C. Both a and b D. All 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
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)
Description : Gross profit ratio is calculated by A. (Gross Profit/Gross sales)*100 B. (Gross Profit/Net sales)*100 C. (Net Profit/Gross sales)*100 D. None of the above
Last Answer : B. (Gross Profit/Net sales)*100
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
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.
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
Description : 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 ... contribution is positive and more than fixed cost there will be profit. D. All of the above
Last Answer : A. If contribution is zero, there is loss equal to fixed costs
Description : Marginal costing is also known as A. Direct costing B. Variable costing 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
Description : Sales revenue less cost of goods sold is called a. gross profit. b. net profit. c. net income. d. marginal income.
Last Answer : a. gross profit.
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
Description : Sales margin variance due to sales quantities is measured as A. Standard profit - Revised standard profit B. Revised standard profit - Budgeted profit C. Standard profit + Revised standard profit D. Revised standard profit + Budgeted profit
Last Answer : B. Revised standard profit - Budgeted profit
Description : In marketing, ______ is the focal point. A. Profit B. Sales C. Customer D. All of the above
Last Answer : C. Customer
Description : Method of managing advertising budget at level company can have money for is classified as A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method
Last Answer : B. affordable method
Description : Method of managing promotional budget to match outlays of competitors is called A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method
Last Answer : C. competitive parity method
Description : Methods used to determine total budget for advertising its market offerings are A. affordable method B. competitive parity method C. percentage of sales method D. all of above
Last Answer : D. all of above
Description : Method of managing advertising budget at a certain percentage of sales price per unit or forecasted sales of products is classified as A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method
Last Answer : A. percentage of sales method
Description : Method of managing promotion budget by defining objectives, determining tasks to achieve objectives and estimating costs for activities is called A. percentage of sales method B. affordable method C. competitive parity method D. objective and task method
Last Answer : D. objective and task method
Description : National Income ignores: A. Sales of a firm B. Salary of Employees C. Exports of the IT Sector D. Sale of land
Last Answer : D. Sale of land
Description : _______ is designed after assessment of the volume of output to be produced during budget period. A. Cost budget B. Sales budget C. Production budget D. None of the above
Last Answer : A. Cost budget
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
Description : Which of the following is NOT considered to be an objective associated with the use of sales promotions? A. Change buyer attitudes B. Increase volume of individual purchases C. Prompt buyers into trial purchase D. Product improvement
Last Answer : A. Change buyer attitudes
Description : To maximize market share, a firm may use _____________ pricing, which is based on the theory that as sales volume increases, unit costs will decrease. A. Market-penetration B. Market-skimming C. Value pricing D. Demand pricing E. Price bands
Last Answer : A. Market-penetration
Description : In market-penetration pricing, the company's objective is to ________, believing that higher sales volume will lead to lower unit costs and higher long-run profits. A. Block competitive launches B. ... their market share C. Minimize their market share D. Maximize volume E. None of the above
Last Answer : B. Maximize their market share
Description : Profit for the objective of calculating a ratio may be taken as A. Profit before tax but after interest B. Profit before interest and tax C. Profit after interest and tax D. All of the above
Last Answer : D. All of the above
Description : The P/V ratio can be improved by A. Decreasing the selling price per unit B. Increasing variable cost C. Changing the sales mix D. None of the above
Last Answer : C. Changing the sales mix
Description : Operating ratio is calculated by A. (Operating Cost/Gross sales)*100 B. (Operating Cost/Gross sales)*100 C. (Operating cost/Net sales)*100 D. None of the above
Last Answer : C. (Operating cost/Net sales)*100
Description : Debtors Turnover ratio is also known as (i) Receivables turnover ratio (ii) Debtors velocity (iii) Stock velocity (iv) Payable turnover ratio A. (i) and (ii) B. (i) and (iii) C. (ii) and (iii) D. (iii) and (iv)
Last Answer : A. (i) and (ii)
Description : Disguised unemployment means: A. Unemployment in agriculture B. Unemployment due to recession C. Unemployment due to downturn in business activity D. Marginal Productivity of Labor (MPL) is zero.
Last Answer : C. Unemployment due to downturn in business activity
Description : ___________ is not suitable where selling price is determined on the basis of cost-plus method. A. Absorption costing B. Marginal costing C. Both a and b D. None of the above
Last Answer : B. Marginal costing
Description : Managers utilizes marginal costing for A. Make or buy decision B. Utilization of additional capacity C. Determination of dumping price D. All of the above
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
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
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
Description : Liquidity ratios are expressed in A. Pure ratio form B. Percentage C. Rate or time D. None of the above
Last Answer : A. Pure ratio form
Description : Few items of P/L A/c of a company are– Sales – Rs.1,60,000 Closing stock – Rs.38,000 Non-operating Expenses – Rs.800 Non-operating Income – Rs.4,800 Net Profit – Rs.28,000 What is the Operating Profit Ratio ? (A) 18% (B) 20% (C) 15% (D) 57%
Last Answer : Answer: 15%
Description : The work of setting up objectives for selling activities, determining and scheduling the steps necessary to achieve these objectives is known as…………. A. Selling B. Sales policy C. Sales programme D. Sales planning
Last Answer : D. Sales planning
Description : Jaya and sona invested amount of Rs 10000 and Rs 5000 respectively in their business. What percentage of the share of the profit that should be given to Jaya such that ratio of income is equal for both at the end of year? A) 5 B) 7 C) 4 D) 6
Last Answer : Answer: C) Ratio of invest of jaya & sona =10000:5000 =2:1 Income of both at end of year is equal, then Income is divided into 50 parts. Income be 100%, then 1st part =25 ,2 nd part=25, Percentage=100/25=4%
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
Description : Which of the following is responsibility center? A. Expense center B. Profit center C. Investment center D. All of the above
Description : In profit center revenue represents a monetary measure of output emanating from a profit center in a given period irrespective whether A. The revenue is realized or not B. The output is sold or not C. Both a and b D. None 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