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

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
by

1 Answer

Answer :

A. (Fixed cost + profit)/ (P/V Ratio)
by

Related questions

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.

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

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

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

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Last Answer : C. Changing the sales mix

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

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

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

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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.

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Last Answer : D. All of the above.

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

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

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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

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Last Answer : B. (Gross Profit/Net sales)*100

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

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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

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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

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

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

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Last Answer : A. If contribution is zero, there is loss equal to fixed costs

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

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When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V ratio is — (a) 20% (b) 30% (c) 25% (d) 40%.

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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

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