Which of the following statements is/are correct? 1. A materials requisition note is used to record the issue of direct material to a specific job. 2. A typical job cost will contain actual costs for material, labour and production overheads, and non –production overheads are often added as a percentage of total production cost 3. The job costing method can be applied in costing batches (a) (1) only (b) (1) and (2) only (c) (1) and (3) only (d) (2) and (3) only

Which of the following statements is/are correct?

1. A materials requisition note is used to record the issue of direct material to a specific job.

2. A typical job cost will contain actual costs for material, labour and production overheads, and 

non –production overheads are often added as a percentage of total production cost

3. The job costing method can be applied in costing batches

(a) (1) only

(b) (1) and (2) only

(c) (1) and (3) only

(d) (2) and (3) only
by

1 Answer

Answer :

(c) (1) and (3) only
by

Related questions

(d) Rs 1.50 Q.61. CA Co manufactures a single product and has drawn up the following flexed budget for the year. 60% 70% 80% Rs Rs Rs Direct materials 120,000 140,000 160,000 Direct labour 90,000 105,000 120,000 Production overheads 54,000 58,000 62,000 Other overheads 40,000 40,000 40,000 Total Cost 304,000 343,000 382,000 What would be the total cost in a budget that is prepared at the 77% level of activity? (a) Rs 330,300 (b) Rs 370,300 (c) Rs 373,300 (d) Rs 377,300

Description : Q.61. CA Co manufactures a single product and has drawn up the following flexed budget for the year.  60% 70% 80%  Rs Rs Rs Direct materials 120,000 140,000 160,000 Direct labour 90,000 105,000 120,000 Production ... activity? (a) Rs 330,300 (b) Rs 370,300 (c) Rs 373,300 (d) Rs 377,300

Last Answer : (b) Rs 370,300

Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000 Manufacturing overheads: Rs. 30,000 (a) Rs. 1,80,000 (b) Rs. 2,00,000 (c) Rs. 1,70,000 (d) Rs. 2,10,000

Description : Calculate the prime cost from the following information: Direct material purchased: Rs. 1,00,000 Direct material consumed: Rs. 90,000 Direct labour: Rs. 60,000 Direct expenses: Rs. 20,000 Manufacturing overheads: Rs. 30,000 (a) Rs. 1,80,000 (b) Rs. 2,00,000 (c) Rs. 1,70,000 (d) Rs. 2,10,000

Last Answer : (c) Rs. 1,70,000

During September, 300 labour hours were worked for a total cost of Rs 4800. The variable overhead expenditure variance was Rs 600 (A). Overheads are assumed to be related to direct labour hours of active working. What was the standard cost per labour hour? (a) Rs 14 (b) Rs 16.50 (c) Rs 17.50

Description : During September, 300 labour hours were worked for a total cost of Rs 4800. The variable  overhead expenditure variance was Rs 600 (A). Overheads are assumed to be related to direct labour  hours of active working. What was the standard cost per labour hour? (a) Rs 14 (b) Rs 16.50 (c) Rs 17.50

Last Answer : (a) Rs 14

Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50 per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25 per completed unit and Rs 2.50 per unit incomplete. If 11,750completed units were transferred out, what was the closing inventory in Process B? (a) Rs. 6562.50 (b) Rs. 12,250.00 (c) Rs. 14,437.50 (d) Rs. 25,375.00

Description : Process B had no opening inventory. 13,500 units of raw material were transferred in at Rs 4.50  per unit. Additional material at Rs1.25per unit was added in process. Labour and overheads were Rs 6.25  per completed unit and Rs ... 6562.50 (b) Rs. 12,250.00 (c) Rs. 14,437.50 (d) Rs. 25,375.00

Last Answer : (a) Rs 142,485

A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694. What was the prime cost of the job? (a) Rs 489 (b) Rs 606 (c) Rs 996 (d) Rs 1300

Description : A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to  total costs as a profit margin. Job number Y256 was sold for Rs1690 and incurred overheads of Rs 694.  What was the prime cost of the job? (a) Rs 489 (b) Rs 606 (c) Rs 996 (d) Rs 1300

Last Answer : (b) Rs 606

In element-wise classification of overheads, which one of the following is not included — (a) Fixed overheads (b) Indirect labour (c) Indirect materials (d) Indirect expenditure.

Description : In element-wise classification of overheads, which one of the following is not included — (a) Fixed overheads (b) Indirect labour (c) Indirect materials (d) Indirect expenditure.

Last Answer : (a) Fixed overheads

Which of the following is not a method of cost absorption? (a) Percentage of direct material cost (b) Machine hour rate (c) Labour hour rate (d) Repeated distribution method

Description : Which of the following is not a method of cost absorption? (a) Percentage of direct material cost (b) Machine hour rate (c) Labour hour rate (d) Repeated distribution method

Last Answer : d) Repeated distribution method

State which of the following are the characteristics of service costing. 1. High levels of indirect costs as a proportion of total costs 2. Use of composite cost units 3. Use of equivalent units (a) (1) only (b) (1) and (2) only (c) (2) only (d) (2) and (3) only

Description : State which of the following are the characteristics of service costing. 1. High levels of indirect costs as a proportion of total costs 2. Use of composite cost units 3. Use of equivalent units (a) (1) only (b) (1) and (2) only (c) (2) only (d) (2) and (3) only

Last Answer : (b) (1) and (2) only

Describe the method of costing to be applied in case of Nursing Home: (a) Operating Costing (b) Process Costing (c) Contract Costing (d) Job Costing

Description : Describe the method of costing to be applied in case of Nursing Home: (a) Operating Costing (b) Process Costing (c) Contract Costing (d) Job Costing

Last Answer : (a) Operating Costing

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

Out of the following, what is not the work of purchase department: (a) Receiving purchase requisition (b) Exploring the sources of material supply (c) Preparation and execution of purchase orders (d) Accounting for material received

Description : Out of the following, what is not the work of purchase department: (a) Receiving purchase requisition (b) Exploring the sources of material supply (c) Preparation and execution of purchase orders (d) Accounting for material received

Last Answer : (d) Accounting for material received

CG Co manufactures a single product T. Budgeted production output of product T during June is 200 units. Each unit of product T requires 6 labour hours for completion and CG Co anticipates 20 per cent idle time. Labour is paid at a rate of Rs7 per hour. The direct labour cost budget for March is (a) Rs 6,720 (b) 8,400 (c) 10,080 (d) 10,500

Description : CG Co manufactures a single product T. Budgeted production output of product T during June is  200 units. Each unit of product T requires 6 labour hours for completion and CG Co anticipates 20 per  cent idle time. Labour is paid at ... for March is (a) Rs 6,720 (b) 8,400 (c) 10,080 (d) 10,500

Last Answer : (d) 10,500

In process costing, if an abnormal loss arises, the process account is generally (a) Debited with the scrap value of the abnormal loss units (b) Debited with the full production cost of the abnormal loss units (c) Credited with the scrap value of the abnormal loss units

Description : In process costing, if an abnormal loss arises, the process account is generally (a) Debited with the scrap value of the abnormal loss units (b) Debited with the full production cost of the abnormal loss units (c) Credited with the scrap value of the abnormal loss units

Last Answer : (d) Credited with the full production cost of the abnormal loss units

Stores Ledger is a: (a) Quantitative as well as value wise records of material received, issued and balance; (b) Quantitative record of material received, issued and balance (c) Value wise records of material received, issued and balance (d) a record of labour attendance

Description : Stores Ledger is a:  (a) Quantitative as well as value wise records of material received, issued and balance; (b) Quantitative record of material received, issued and balance (c) Value wise records of material received, issued and balance (d) a record of labour attendance

Last Answer : (a) Quantitative as well as value wise records of material received, issued and balance;

Bin Card is a (a) Quantitative as well as value wise records of material received, issued and balance; (b) Quantitative record of material received, issued and balance (c) Value wise records of material received, issued and balance (d) a record of labour attendance

Description : Bin Card is a  (a) Quantitative as well as value wise records of material received, issued and balance; (b) Quantitative record of material received, issued and balance (c) Value wise records of material received, issued and balance (d) a record of labour attendance

Last Answer : (b) Quantitative record of material received, issued and balance

Following information is available of PQR for year ended March, 2013: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs. 2.50 per unit is scrap value and Rs. 46,000 incurred towards total process cost then amount on account of abnormal gain to be transferred to Costing P&L will be:- (a) Rs. 2,500 (b) Rs. 2,000 (c) Rs. 4,000 (d) Rs. 3,500

Description : Following information is available of PQR for year ended March, 2013: 4,000 units in process, 3,800 units output, 10% of input is normal wastage, Rs. 2.50 per unit is scrap value and Rs. 46,000 incurred towards total process cost ... be:- (a) Rs. 2,500 (b) Rs. 2,000 (c) Rs. 4,000 (d) Rs. 3,500

Last Answer : (a) Rs. 2,500

. A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour cost budgeted for the job is Rs36,300. What is the labour cost per hour( to the nearest cent)? (a) Rs 8.25 (b) Rs 8.80 (c) Rs 11.00 (d) Rs 14.67

Description : . A job is budgeted to require 3,300 productive hours after incurring 25% idle time. If the total labour  cost budgeted for the job is Rs36,300. What is the labour cost per hour( to the nearest cent)? (a) Rs 8.25 (b) Rs 8.80 (c) Rs 11.00 (d) Rs 14.67

Last Answer : (a) Rs 8.25

Calculate cost of sales from the following: Net Works cost: Rs. 2,00,000 Office & Administration Overheads: Rs. 1,00,000 Opening stock of WIP: Rs. 10,000 Closing Stock of WIP: Rs. 20,000 Closing stock of finished goods: Rs. 30,000 There was no opening stock of finished goods. Selling overheads: Rs. 10,000 (a) Rs. 2,70,000 (b) Rs. 2,80,000 (c) Rs. 3,00,000 (d) Rs. 3,20,000

Description : Calculate cost of sales from the following: Net Works cost: Rs. 2,00,000 Office & Administration Overheads: Rs. 1,00,000 Opening stock of WIP: Rs. 10,000 Closing Stock of WIP: Rs. 20,000 Closing stock of finished goods: Rs. ... Rs. 2,70,000 (b) Rs. 2,80,000 (c) Rs. 3,00,000 (d) Rs. 3,20,000

Last Answer : (b) Rs. 2,80,000

Costs associated with the labour turnover can be categorised into: (a) Preventive Costs only (b) Replacement costs only (c) Both of the above (d) Machine costs

Description : Costs associated with the labour turnover can be categorised into: (a) Preventive Costs only (b) Replacement costs only (c) Both of the above (d) Machine costs

Last Answer : (c) Both of the above

The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted. However, the actual expenditure of Rs 300,000 was Rs. 18,000 over budget. What was the budget variable cost per unit?

Description :  The actual output of 162,500 units and actual fixed costs of Rs. 87000 were exactly as budgeted.  However, the actual expenditure of Rs 300,000 was Rs. 18,000 over budget. What was the budget variable cost per unit?

Last Answer : (a) Rs 1.20

Overhead refers to: (a) Direct or Prime Cost (b) All Indirect costs (c) only Factory indirect costs

Description : Overhead refers to: (a) Direct or Prime Cost (b) All Indirect costs (c) only Factory indirect costs

Last Answer : (b) All Indirect costs

Element/s of Cost of a product are: (a) Material only (b) Labour only (c) Expenses only (d) Material, Labour and expenses

Description : Element/s of Cost of a product are: (a) Material only (b) Labour only (c) Expenses only (d) Material, Labour and expenses

Last Answer : (d) Material, Labour and expenses

3. S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period(a) 10.1% decrease (b) 11.2% decrease (c) 13.3% decrease (d) 16.0% decrea

Description : 3. S produces and sells one product, P, for which the data are as follows: Selling price Rs 28 Variable cost Rs 16 Fixed cost Rs 4 The fixed costs are based on a budgeted production and sales level of 25 ... period(a) 10.1% decrease (b) 11.2% decrease (c) 13.3% decrease (d) 16.0% decrease

Last Answer : (a) 10.1% decrease

Which of the following organisations should not be advised to use service costing? (a) Distribution service (b) Hospital (c) Maintenance division of a manufacturing company (d) A light engineering company

Description : Which of the following organisations should not be advised to use service costing? (a) Distribution service (b) Hospital(c) Maintenance division of a manufacturing company (d) A light engineering company

Last Answer : (d) A light engineering company

In process costing, a joint product is (a) a product which is later divided into many parts (b) a product which is produced simultaneously with other products and is of similar value to at least one of the other products. (c) A product which is produced simultaneously with other products but which is of a greater value than any of the other products.

Description : In process costing, a joint product is (a) a product which is later divided into many parts (b) a product which is produced simultaneously with other products and is of similar value to ... simultaneously with other products but which is of a greater value  than any of the other products.

Last Answer : (b) a product which is produced simultaneously with other products and is of similar value to at least  one of the other products.

Service departments costs should be allocated to: (a) Only Service departments (b) Only Production departments (c) Both Production and service departments (d) None of the production and service departments

Description : Service departments costs should be allocated to: (a) Only Service departments (b) Only Production departments (c) Both Production and service departments (d) None of the production and service departments

Last Answer : (c) Both Production and service departments

Calculate the labour turnover rate according to Separation method from the following: No. of workers on the payroll: - At the beginning of the month: 500 - At the end of the month: 600 During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of these, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme. (a) 4.55% (b) 1.82% (c) 6% (d) 3%

Description : Calculate the labour turnover rate according to Separation method from the following: No. of workers on the payroll: - At the beginning of the month: 500 - At the end of the month: 600 During the month, 5 workers left ... engaged for an  expansion scheme. (a) 4.55% (b) 1.82% (c) 6% (d) 3%

Last Answer : (a) 4.55%

Calculate the labour turnover rate according to replacement method from the following: No. of workers on the payroll: - At the beginning of the month: 500 - At the end of the month: 600 During the month, 5 workers left, 20 workers were discharged and 75 workers were recruited. Of these, 10 workers were recruited in the vacancies of those leaving and while the rest were engaged for an expansion scheme. (a) 4.55% (b) 1.82% (c) 6% (d) 3%

Description : Calculate the labour turnover rate according to replacement method from the following: No. of workers on the payroll: - At the beginning of the month: 500 - At the end of the month: 600 During the month, 5 workers left ... engaged for an expansion scheme. (a) 4.55% (b) 1.82% (c) 6% (d) 3%

Last Answer : (b) 1.82%

Calculate workers recruited and joined from the following: Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80. (a) 112 (b) 80

Description : Calculate workers recruited and joined from the following: Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and  Separation method. No. of workers replaced during the quarter is 80. (a) 112 (b) 80

Last Answer : (a) 112

Calculate workers left and discharged from the following: Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and Separation method. No. of workers replaced during the quarter is 80. (a) 112 (b) 80 (c) 48 (d) 64

Description : Calculate workers left and discharged from the following: Labour turnover rates are 20%, 10% and 6% respectively under Flux method, Replacement method and  Separation method. No. of workers replaced during the quarter is 80. (a) 112 (b) 80 (c) 48 (d) 64

Last Answer : (c) 48

Which of the following is not an avoidable cause of labour turnover: (a) Dissatisfaction with Job (b) Lack of training facilities (c) Low wages and allowances (d) Disability, making a worker unfit for work

Description : Which of the following is not an avoidable cause of labour turnover: (a) Dissatisfaction with Job (b) Lack of training facilities (c) Low wages and allowances (d) Disability, making a worker unfit for work

Last Answer : (d) Disability, making a worker unfit for work

During a period 17, 500 labour hours were worked at a standard cost of Rs 6.50 per hour. The labour efficiency variance was Rs 7,800 favourable. How many standard hours were produced? (a) 1,200 (b) 16,300 (c) 17,500 (d) 18,700

Description : During a period 17, 500 labour hours were worked at a standard cost of Rs 6.50 per hour. The  labour efficiency variance was Rs 7,800 favourable. How many standard hours were produced? (a) 1,200 (b) 16,300 (c) 17,500 (d) 18,700

Last Answer : (d) 18,700

A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company's annual fixed costs? (a) Rs. 120 (b) Rs. 2,40,000

Description : A company's break even point is 6,000 units per annum. The selling price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What are the company's annual fixed costs? (a) Rs. 120 (b) Rs. 2,40,000

Last Answer : 5,40,000

A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is: (a) 2,000 units (b) 3,000 units (c) 4,000 units (d) 6,000 units

Description : A company makes a single product and incurs fixed costs of Rs. 30,000 per annum. Variable cost per unit is Rs. 5 and each unit sells for Rs. 15. Annual sales demand is 7,000 units. The breakeven point is: (a) 2,000 units (b) 3,000 units (c) 4,000 units (d) 6,000 units

Last Answer : (b) 3,000 units

Sunk costs are: (a) relevant for decision making (b) Not relevant for decision making (c) cost to be incurred in future (d) future costs

Description : Sunk costs are: (a) relevant for decision making (b) Not relevant for decision making (c) cost to be incurred in future (d) future costs

Last Answer : (b) Not relevant for decision making

Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed (b) A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control. (c) Centres having the responsibility of generating and maximising profits (d) Centres concerned with earning an adequate return on investment

Description : Cost Unit is defined as: (a) Unit of quantity of product, service or time in relation to which costs may be ascertained or  expressed (b) A location, person or an item ... the responsibility of generating and maximising profits (d) Centres concerned with earning an adequate return on investment

Last Answer : Unit of quantity of product, service or time in relation to which costs may be ascertained or  expressed

Labour turnover means: (a) Turnover generated by labour (b) Rate of change in composition of labour force during a specified period (c) Either of the above (d) Both of the above

Description : Labour turnover means: (a) Turnover generated by labour (b) Rate of change in composition of labour force during a specified period (c) Either of the above (d) Both of the above

Last Answer : (b) Rate of change in composition of labour force during a specified period

While inquiring into a complaint information commissions have the power to a) Receive evidence on affidavit b) Requisition record or copies thereof from any court or office c) Issue summons for examination of witnesses or documents d) All the above

Description : While inquiring into a complaint information commissions have the power to a) Receive evidence on affidavit b) Requisition record or copies thereof from any court or office c) Issue summons for examination of witnesses or documents d) All the above

Last Answer : d) All the above

Which of the following would explain an adverse variable production overhead efficiency variance? 1. Employees were of a lower skill level than specified in the standard 2. Unexpected idle time resulted from a series of machine breakdown 3. Poor Quality material was difficult to process (a) (1), (2) and (3) (b) (1) and (2) (c) (2) and (3) (d) (1) and (3)

Description : Which of the following would explain an adverse variable production overhead efficiency variance? 1. Employees were of a lower skill level than specified in the standard 2. Unexpected idle time resulted from a series of machine breakdown 3. ... b) (1) and (2) (c) (2) and (3) (d) (1) and (3)

Last Answer : (d) (1) and (3)

Internal costs include a) Developers salaries b) Managers and support personnel salaries c) The cost of overheads such as utilities, rent and senior managers d) Materials (such as manuals) and services such as travel e) All of the above.

Description : Internal costs include a) Developers salaries b) Managers and support personnel salaries c) The cost of overheads such as utilities, rent and senior  managers d) Materials (such as manuals) and services such as travel e) All of the above.

Last Answer : a) Developers salaries

Conversion cost is the sum total of: A. Direct material cost and direct wages cost B. Direct wages, direct expenses and factory overheads C. Indirect wages and factory overheads D. Indirect wages, direct wages & factory overheads

Description : Conversion cost is the sum total of: A. Direct material cost and direct wages cost B. Direct wages, direct expenses and factory overheads C. Indirect wages and factory overheads D. Indirect wages, direct wages & factory overheads

Last Answer : C. Indirect wages and factory overheads

In Project crashing, rent and overheads are treated as A.Significant Cost B.Insignificant costs C.Direct Costs D.Indirect Costs

Description : In Project crashing, rent and overheads are treated as  A.Significant Cost  B.Insignificant costs  C.Direct Costs  D.Indirect Costs

Last Answer : D.Indirect Costs

The following information is available for the W hotel for the latest thirty day period. Number of rooms available per night 40 Percentage occupancy achieved 65% Room servicing cost incurred Rs. 3900 The room servicing cost per occupied room-night last period, to the nearest Rs, was: (a) Rs 3.25 (b) Rs 5.00 (c) Rs 97.50 (d) Rs 150.00

Description : The following information is available for the W hotel for the latest thirty day period. Number of rooms available per night 40 Percentage occupancy achieved 65% Room servicing cost incurred Rs. 3900 The room servicing cost per occupied room- ... (a) Rs 3.25 (b) Rs 5.00 (c) Rs 97.50 (d) Rs 150.00

Last Answer : (b) Rs 5.00

In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own ______________. (a) Fixed Cost (b) Variable Cost (c) Total Cost (d) Prime Cost

Description : In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own ______________. (a) Fixed Cost (b) Variable Cost (c) Total Cost (d) Prime Cost

Last Answer : (b) Variable Cost

Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking. (a) can not (b) can (c) may or may not (d) must

Description : Uncontrollable costs are the costs which be influenced by the action of a specified member of an  undertaking. (a) can not (b) can (c) may or may not (d) must

Last Answer : (a) can not

. Which of the following is not a reason for an idle time variance? (a) Wage rate increase (b) Machine breakdown (c) Illness or injury to worker (d) Non- availability of material

Description : . Which of the following is not a reason for an idle time variance? (a) Wage rate increase (b) Machine breakdown (c) Illness or injury to worker (d) Non- availability of material

Last Answer : (a) Wage rate increase

Which of these is not a Material control technique: (a) ABC Analysis (b) Fixation of raw material levels (c) Maintaining stores ledger (d) Control over slow moving and non moving items

Description : Which of these is not a Material control technique: (a) ABC Analysis (b) Fixation of raw material levels (c) Maintaining stores ledger (d) Control over slow moving and non moving items

Last Answer : (c) Maintaining stores ledger

The cost per unit of a product manufactured in a factory amounts to Rs. 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs. per unit. (a) Rs. 145 (b) Rs. 150

Description : The cost per unit of a product manufactured in a factory amounts to Rs. 160 (75% variable) when the production is 10,000 units. When production increases by 25%, the cost of production will be Rs. per unit. (a) Rs. 145 (b) Rs. 150

Last Answer : (c) Rs. 152

It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point? (a) 8,788 units (b) 11,600 units (c) 11,885 units (d) 12,397 units

Description : It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point? (a) 8,788 units (b) 11,600 units (c) 11,885 units (d) 12,397 units

Last Answer : (c) 11,885 units