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

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
by

1 Answer

Answer :

Option B
by

Related questions

Pick out the wrong statement. (A) Gross margin = net income - net expenditure (B) Net sales realisation (NSR) = Gross sales - selling expenses (C) At breakeven point, NSR is more than the total production cost (D) Net profit = Gross margin - depreciation - interest

Description : Pick out the wrong statement. (A) Gross margin = net income - net expenditure (B) Net sales realisation (NSR) = Gross sales - selling expenses (C) At breakeven point, NSR is more than the total production cost (D) Net profit = Gross margin - depreciation - interest

Last Answer : (C) At breakeven point, NSR is more than the total production cost

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

In a chemical process plant, the total product cost comprises of manufacturing cost and the (A) General expenses (B) Overhead cost (C) R & D cost (D) None of these

Description : In a chemical process plant, the total product cost comprises of manufacturing cost and the (A) General expenses (B) Overhead cost (C) R & D cost (D) None of these

Last Answer : (A) General expenses

In a manufacturing industry, breakeven point occurs, when the (A) Total annual rate of production equals the assigned value (B) Total annual product cost equals the total annual sales (C) Annual profit equals the expected value (D) Annual sales equals the fixed cost

Description : In a manufacturing industry, breakeven point occurs, when the (A) Total annual rate of production equals the assigned value (B) Total annual product cost equals the total annual sales (C) Annual profit equals the expected value (D) Annual sales equals the fixed cost

Last Answer : (B) Total annual product cost equals the total annual sales

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

The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the (A) Overhead cost (B) Working capital (C) Indirect production cost (D) Direct production cost

Description : The 'total capital investment' for a chemical process plant comprises of the fixed capital investment and the (A) Overhead cost (B) Working capital (C) Indirect production cost (D) Direct production cost

Last Answer : (B) Working capital

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

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

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.

To determine the breakeven point in units, one divides fixed costs by: A)total costs. B)variable costs times price. C)price minus variable costs. D)price per unit.

Description : To determine the breakeven point in units, one divides fixed costs by: A)total costs. B)variable costs times price. C)price minus variable costs. D)price per unit.

Last Answer : C)price minus variable costs.

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

Expenditure on research and development (R & D) is categorised as the __________, while making an estimate of the total product cost for a chemical plant. (A) Overhead cost (B) Fixed expenses (C) General expenses (D) Direct production cost

Description : Expenditure on research and development (R & D) is categorised as the __________, while making an estimate of the total product cost for a chemical plant. (A) Overhead cost (B) Fixed expenses (C) General expenses (D) Direct production cost

Last Answer : (C) General expenses

Which of the following relationship is not correct is case of a chemical process plant? (A) Manufacturing cost = direct product cost + fixed charges + plant overhead costs (B) General expenses = administrative expenses + distribution & marketing expenses (C) Total product cost = manufacturing cost + general expenses (D) Total product cost = direct production cost + plant overhead cost

Description : Which of the following relationship is not correct is case of a chemical process plant? (A) Manufacturing cost = direct product cost + fixed charges + plant overhead costs (B) General ... manufacturing cost + general expenses (D) Total product cost = direct production cost + plant overhead cost

Last Answer : (D) Total product cost = direct production cost + plant overhead cost

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.

If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Description : If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Last Answer : (1) 20000 Explanation: Breakeven quantity is the number of incremental units that the firm needs to sell to cover the cost of a marketing program or other type of investment. It is given by the formula: BEQ = FC / (P-VC) Where ... per unit = 30/12 = Rs. 2.5 So 20000/ (2.5-1.5) = 20000/1= Rs. 20,000

If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Description : If the fixed costs of a factory producing candles is Rs 20,000, selling price is Rs 30 per dozen candles and variable cost is Rs 1.5 per candle, what is the break-even quantity? (1) 20000 (2) 10000 (3) 15000 (4) 12000

Last Answer : 20000

Utilities cost in the operation of chemical process plant comes under the (A) Plant overhead cost (B) Fixed charges (C) Direct production cost (D) General expenses

Description : Utilities cost in the operation of chemical process plant comes under the (A) Plant overhead cost (B) Fixed charges (C) Direct production cost (D) General expenses

Last Answer : C) Direct production cost

Pick out the wrong statement. (A) Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity) (B) Return on equity = profit after tax/net worth (C) Working capital turnover ratio = sales/net working capital (D) Total cost of production is more than net sales realisation (NSR) at breakeven point

Description : Pick out the wrong statement. (A) Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity) (B) Return on equity = profit after tax/net worth (C) Working ... /net working capital (D) Total cost of production is more than net sales realisation (NSR) at breakeven point

Last Answer : (D) Total cost of production is more than net sales realisation (NSR) at breakeven point

Breakeven point refers to the situation when (a) Total revenue is equal to total cost ; (b) Total revenue is more than total cost (c) Total revenue is less than total cost ; (d) Total revenue is equal to total variable cost

Description : Breakeven point refers to the situation when (a) Total revenue is equal to total cost ; (b) Total revenue is more than total cost (c) Total revenue is less than total cost ; (d) Total revenue is equal to total variable cost

Last Answer : (a) Total revenue is equal to total cost ;

There are 2 plants manufacturing the same product under one corporate management which has decided to merge them. Calculate Break -even point of the merged plant. Particulars Plant I Plant II Capacity operation 100% 60% Sales 6,00,000 2,40,000 Variable cost 4,40,000 1,80,000 Fixed cost 80,000 50,000

Description : There are 2 plants manufacturing the same product under one corporate management which has decided to merge them. Calculate Break -even point of the merged plant. Particulars Plant I Plant II Capacity operation 100% ... 000 2,40,000 Variable cost 4,40,000 1,80,000 Fixed cost 80,000 50,000simpl

Last Answer : c) Rs 5,00,000

Factory manufacturing cost is the sum of the direct production cost (A) Fixed charges and plant overhead cost (B) And plant overhead cost (C) Plant overhead cost and administrative expenses (D) None of these

Description : Factory manufacturing cost is the sum of the direct production cost (A) Fixed charges and plant overhead cost (B) And plant overhead cost (C) Plant overhead cost and administrative expenses (D) None of these

Last Answer : (A) Fixed charges and plant overhead cost

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

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

For a small scale toy factory, the fixed cost per month is Rs. 5000/-. The variable cost per toy is Rs. 20 and sales price is Rs. 30 per toy. The break even production per month will be __________ toys. (A) 250 (B) 500 (C) 1000 (D) 3000

Description : For a small scale toy factory, the fixed cost per month is Rs. 5000/-. The variable cost per toy is Rs. 20 and sales price is Rs. 30 per toy. The break even production per month will be __________ toys. (A) 250 (B) 500 (C) 1000 (D) 3000

Last Answer : (B) 500

"Break-even point" is the point of intersection of (A) Fixed cost and total cost (B) Total cost and sales revenue (C) Fixed cost and sales revenue (D) None of these

Description : "Break-even point" is the point of intersection of (A) Fixed cost and total cost (B) Total cost and sales revenue (C) Fixed cost and sales revenue (D) None of these

Last Answer : (B) Total cost and sales revenue

Nivetha buys a tape recorder for Rs.450. His overhead expenses are Rs.30 she sells the tape recorder for Rs.600. The profit percent of nivetha is

Description : Nivetha buys a tape recorder for Rs.450. His overhead expenses are Rs.30 she sells the tape recorder for Rs.600. The profit percent of nivetha is

Last Answer : Cost price + profit = selling price Cost price = 450 + 30= 480 Profit=sp-cp =600-480 =120 Profit%= 120/480*100 X = 12000/480 X = 25 %.

What is the break even quantityif the cost of manufacture is the same whichever method is used if A is a fixed cost of 40000 and a variable of 23 and b has a fixed cost of 52000?

Description : What is the break even quantityif the cost of manufacture is the same whichever method is used if A is a fixed cost of 40000 and a variable of 23 and b has a fixed cost of 52000?

Last Answer : There question is incomplete:There is no variable cost given for manufacturing method B. I'll assume it is b.It is unclear as to quantity for which the cost of manufacturing by both methods is the same. I'll assume it is ... - b)I'll let you fill in the value of b; if b has no variable cost, b = 0.

Ashwin purchased a second hand machine for Rs.1 lakh. Over the first year after its purchase. He incurred an expense of Rs.20000 in maintaining it. At the end of the first year he sold it for Rs.80000. Find his profit/loss percentage. If 25% of the total cost price (i.e., purchased price + expenses) is to be deducted on account of depreciation. a)12.5% profit b)12.5% loss c)11 1/9% profit d)11 1/9% loss

Description : Ashwin purchased a second hand machine for Rs.1 lakh. Over the first year after its purchase. He incurred an expense of Rs.20000 in maintaining it. At the end of the first year he sold it for Rs.80000. Find his ... account of depreciation. a)12.5% profit b)12.5% loss c)11 1/9% profit d)11 1/9% loss

Last Answer : d)11 1/9% loss 

A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs. 12 Variable cost per unit - Rs. 8 Fixed cost for a period - Rs. 98,000 Budgeted sales for a period - 30,000 units

Description : A company manufactures a single product for which cost and selling price data are as follows: Selling price per unit - Rs. 12 Variable cost per unit - Rs. 8 Fixed cost for a period - Rs. 98,000 Budgeted sales for a period - 30,000 units

Last Answer : (a) 20%

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

If Wrigley sets its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective? A)A statement of demand elasticities B)An identification of cost structure C)A breakeven analysis D)Identification of a time period for accomplishment

Description : If Wrigley sets its pricing objective as attaining 38 percent of the chewing gum market, what else would be needed to make this a true pricing objective? A)A statement of demand ... An identification of cost structure C)A breakeven analysis D)Identification of a time period for accomplishment

Last Answer : D)Identification of a time period for accomplishment

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

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

The expenses on advertising is called - (1) Implicit cost (2) Surplus cost (3) Fixed cost (4) Selling cost

Description : The expenses on advertising is called - (1) Implicit cost (2) Surplus cost (3) Fixed cost (4) Selling cost

Last Answer : (4) Selling cost Explanation: Selling cost is total cost of marketing, advertising, and selling a product. It differs from the production cost which is incurred to produce goods. Selling cost influences the commercial desire to purchase a commodity,

The expenses on advertising is called (1) Implicit cost (2) Surplus cost (3) Fixed cost (4) Selling cost

Description : The expenses on advertising is called (1) Implicit cost (2) Surplus cost (3) Fixed cost (4) Selling cost

Last Answer : Selling cost

Which of the following statements is true ? 1. Marketing makes the company to go into loss due to higher expenses 2. Marketing is not required in profit making companies 3. Marketing sharpens the minds of the employees 4. Marketing is a time bound seasonal function 5. Marketing is a waste of time

Description : Which of the following statements is true ? 1. Marketing makes the company to go into loss due to higher expenses 2. Marketing is not required in profit making companies 3. Marketing sharpens the ... the employees 4. Marketing is a time bound seasonal function 5. Marketing is a waste of time

Last Answer : Marketing sharpens the minds of the employees

Which of the following statements is true 1. Marketing makes the company to go into loss due to higher expenses 2. Marketing is not required in profit making companies 3. Marketing sharpens the minds of the employees 4. Marketing is a time bound seasonal function 5. Marketing is a waste of time

Description : Which of the following statements is true 1. Marketing makes the company to go into loss due to higher expenses 2. Marketing is not required in profit making companies 3. Marketing sharpens the ... the employees 4. Marketing is a time bound seasonal function 5. Marketing is a waste of time

Last Answer : Marketing is a time bound seasonal function

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.

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

If He charges 17.95 for each CD and his expenses include 1250 for duplicating equipment and 0.65 for each blank CD which equation shows the profit (p) for selling n CD's?

Description : If He charges 17.95 for each CD and his expenses include 1250 for duplicating equipment and 0.65 for each blank CD which equation shows the profit (p) for selling n CD's?

Last Answer : What is the answer ?

Income from operations is gross profit less a. administrative expenses. b. operating expenses. c. other expenses and losses. d. selling expenses.

Description : Income from operations is gross profit less a. administrative expenses. b. operating expenses. c. other expenses and losses. d. selling expenses.

Last Answer : b. operating expenses.

Manufacturing cost in a chemical company does not include the (A) Fixed charges (B) Plant overheads (C) Direct products cost (D) Administrative expenses

Description : Manufacturing cost in a chemical company does not include the (A) Fixed charges (B) Plant overheads (C) Direct products cost (D) Administrative expenses

Last Answer : (D) Administrative expenses

Many sophisticated techniques or tolls are useful in decision-making. Which of the following is a tool that helps managers figure out how much to produce and points out the relationship between revenues, costs, and profits? (a) Marginal analysis ; (b) Breakeven analysis ; (c) Ratio analysis ; (d) Financial analysis

Description : Many sophisticated techniques or tolls are useful in decision-making. Which of the following is a tool that helps managers figure out how much to produce and points out the relationship between revenues, ... Marginal analysis ; (b) Breakeven analysis ; (c) Ratio analysis ; (d) Financial analysis

Last Answer : (b) Breakeven analysis ;

Prime cost is equal to - (1) Variable cost plus administrative cost (2) Variable cost plus fixed costs (3) Variable cost only (4) Fixed cost only

Description : Prime cost is equal to - (1) Variable cost plus administrative cost (2) Variable cost plus fixed costs (3) Variable cost only (4) Fixed cost only

Last Answer : (1) Variable cost plus administrative cost Explanation: Prime Cost refers to a business's expenses for the materials and labor it uses in production. Prime cost is a way of measuring the total cost ... the activity of a business. Variable cost is the sum of marginal costs over all units produced.

Prime cost is equal to (1) Variable cost plus administrative cost (2) Variable cost plus fixed costs (3) Variable cost only (4) Fixed cost only

Description : Prime cost is equal to (1) Variable cost plus administrative cost (2) Variable cost plus fixed costs (3) Variable cost only (4) Fixed cost only

Last Answer : Variable cost plus administrative cost

Jose Suarez has been promoted to sales manager at a new firm and is trying to come up with a sales -force compensation method. He would like to have selling expenses relate directly to sales resources, a highly aggressive sales force, and minimization of nonselling tasks. What compensation method(s) would best fulfill his requirements? A)Combination B)Straight salary C)Straight salary plus generous fringe benefits D)Straight commission E)Salary plus a bonus

Description : Jose Suarez has been promoted to sales manager at a new firm and is trying to come up with a sales -force compensation method. He would like to have selling expenses relate directly to ... B)Straight salary C)Straight salary plus generous fringe benefits D)Straight commission E)Salary plus a bonus

Last Answer : D)Straight commission

Following information is available of XYZ Limited for quarter ended June, 2013 Fixed cost Rs. 5,00,000 Variable cost Rs. 10 per unit Selling price Rs. 15 per unit Output level 1,50,000 units

Description : Following information is available of XYZ Limited for quarter ended June, 2013 Fixed cost Rs. 5,00,000 Variable cost Rs. 10 per unit Selling price Rs. 15 per unit Output level 1,50,000 units

Last Answer : (a) Rs. 2,50,000

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

Cole Company has sales revenue of $39,000, cost of goods sold of $24,000 and operating expenses of $9,000 for the year ended December 31. Cole's gross profit is a. $30,000. b. $15,000. c. $6,000.

Description : Cole Company has sales revenue of $39,000, cost of goods sold of $24,000 and operating expenses of $9,000 for the year ended December 31. Cole's gross profit is a. $30,000. b. $15,000. c. $6,000.

Last Answer : b. $15,000.

Indicate which one of the following would appear on the income statement of both a merchandising company and a service company. a. Gross profit b. Operating expenses c. Sales revenues d. Cost of goods sold

Description : Indicate which one of the following would appear on the income statement of both a merchandising company and a service company. a. Gross profit b. Operating expenses c. Sales revenues d. Cost of goods sold

Last Answer : b. Operating expenses

Following is the application of fund A. Decrease in balance of Fixed Asset B. Decrease in working capital C. Decrease in net profit D. Decrease in preliminary expenses

Description : Following is the application of fund A. Decrease in balance of Fixed Asset B. Decrease in working capital C. Decrease in net profit D. Decrease in preliminary expenses

Last Answer : C. Decrease in net profit