Description : (i) Excess of opening capital over closing capital of proprietor under single entry system.
Last Answer : Write a word, term, or phrase which can substitute each of the following statements : (i) ... (v) The incomplete method of the accounting system.
Description : (i) Excess of a total of debit side over a total of credit side of Cash Book, Bank column.
Last Answer : Give one word/term/phrase which can substitute each of the following statements: (i) Excess of a ... balance of the bank column of the Cash Book.
Description : A firm is in equilibrium when its (1) marginal cost equals the marginal revenue (2) total cost is minimum (3) total revenue is maximum (4) average revenue and marginal revenue are equal
Last Answer : (1) marginal cost equals the marginal revenue Explanation: A consumer is in a state of equilibrium when he achieves maximum aggregate satisfaction on the expenditure that he makes depending on the ... its production. In short run Marginal revenue = Marginal Cost is the condition of equilibrium.
Description : Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its - (1) long-run marginal cost curve (2) long-run average cost curve (3) long-run average variable cost curve (4) long-run average revenue curve
Last Answer : (2) long-run average cost curve Explanation: Under perfect competition, the firms operate at the minimum point of long-run average cost curve. In this way, the actual longrun output of ... ideal output. This gives the mea-sure of excess capacity which lies unutilized under imperfect competition.
Description : While Computing the actual cost of any asset falling within a block, direct cost attributable to bring the asset to its present location and working condition for its intended use(i.e. expenses incurred ... from the purchase price c) Be subtracted from WDV d) Be claimed as revenue expenditure
Last Answer : b) Be subtracted from the purchase price
Description : A product is a price leader when: A)it is sold at the highest possible price. B)an increase in price leads to increased revenue C)it sometimes is sold at less than cost in the hope that sales of other products will increase. D)its price leads the industry and competitors follow with similar prices.
Last Answer : C)it sometimes is sold at less than cost in the hope that sales of other products will increase. D)its price leads the industry and competitors follow with similar prices.
Description : A Monopoly‟s demand curve is (a) Same as its average revenue curve ; (b) Same as its supply curve; (c) Same as its cost curve ; (d) Same as that of the factor inputs
Last Answer : (a) Same as its average revenue curve ;
Description : A competitive firm maximizes its total profit when ……………… (a) Average cost equal average realization ; (b) Marginal cost equals Price; (d) Total revenue is the maximum ; (d) MR = AR
Last Answer : (d) Total revenue is the maximum ;
Description : Under perfect competition, the industry does not have any excess capacity because each firm produces at the minimum point on its (1) long-run marginal cost curve (2) long-run average cost curve (3) long-run average variable cost curve (4) long-run average revenue curve
Last Answer : long-run average cost curve
Last Answer : marginal cost equals the marginal revenue
Description : Expenses need to be recorded in the period in which the associated revenues are recognised. This is to be ensured as per which one of the following accounting principles ? (A) Revenue recognition (B) Cost benefit (C) Matching (D) Periodicity
Last Answer : Answer: Revenue recognition
Description : Equilibrium price in the market is determined by the - (1) equality between marginal cost and average cost. (2) equality between total cost and total revenue. (3) equality between average cost and average revenue. (4) equality between marginal cost and marginal revenue.
Last Answer : (4) equality between marginal cost and marginal revenue. Explanation: The equilibrium price is the market price where the quantity of goods supplied is equal to the quantity of goods demanded. This is the ... in equilibrium at the point of equality of marginal cost and marginal revenue. (MC = MR).
Description : The 'break-even' point is where (1) marginal revenue equals marginal cost (2) average revenue equals average cost, (3) total revenue equals total cost (4) None of the above
Last Answer : (3) total revenue equals total cost Explanation: Break-even is the point of balance between making either a profit or a loss. In economics & business, specifically cost accounting, the break ... although opportunity costs have been "paid", and capital has received the riskadjusted, expected return.
Description : Equilibrium output is deter-mined by: (1) the equality between total Variable cost and Marginal revenue. (2) the equality between Marginal cost and Marginal revenue. (3) the equality between Average cost and Average revenue. (4) the equality between total cost and total revenue.
Last Answer : (2) the equality between Marginal cost and Marginal revenue. Explanation: Equilibrium Output refers to the level of output where the Aggregate Demand is equal to the Aggregate Supply (AD = AS) in an ... because it adds to its profits. He stops producing more only when MC becomes equal to MR.
Description : The price of a commodity is the same as (1) Average revenue (2) Total cost (3) Average cost (4) Total revenue
Last Answer : (1) Average revenue Explanation: Average Revenue refers to revenue received per unit of output sold. It is the same as Price of the commodity. Average revenue can be obtained by dividing the total revenue by the number of units sold.
Description : The 'breali-even point' is where - (1) marginal revenue equals marginal cost (2) average revenue equals average cost (3) total revenue equals total cost (4) None of these
Last Answer : (2) average revenue equals average cost Explanation: The break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one ... been made, although opportunity costs have been "paid", and capital has received the riskadjusted, expected return.
Description : The equilibrium of a firm under perfect competition will be determined when - (1) Marginal Revenue > Average Cost (2) Marginal Revenue > Average Revenue (3) Marginal Revenue = Marginal Cost (4) Marginal Cost > Average Cost
Last Answer : (3) Marginal Revenue = Marginal Cost Explanation: 173. (3) When the marginal revenue productivity of a factor is equal to the marginal- cost (MR=MC) of the factor, the firm will be in ... revenue and marginal revenue (P = AR = MR) is the standard condition for a perfectly competitive firm.
Description : In equilibrium, a perfectly competitive firm will equate - (1) marginal social cost with marginal social benefit (2) market supply with market demand (3) marginal profit with marginal cost (4) marginal revenue with marginal cost
Last Answer : (4) marginal revenue with marginal cost Explanation: A perfectly competitive firm's supply curve is that portion of its marginal cost curve that lies above the minimum of the average variable cost ... marginal cost curve. The marginal cost curve is thus the perfectly competitive firm's supply curve.
Description : The marginal revenue of a monopolist is: (1) more than price (2) equal to price (3) less than price (4) less than marginal cost
Last Answer : (3) less than price Explanation: A monopolist's marginal revenue is always less than or equal to the price of the good. Marginal revenue is the amount of revenue the firm receives for each additional unit ... - at the new level of output and total revenue at the previous output (one unit less).
Description : The situation in which total revenue is equal to total cost, is known as - (1) monopolistic competition (2) equilibrium level of output (3) break-even point (4) perfect competition
Last Answer : (3) break-even point Explanation: In economics and cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or ... made, although opportunity costs have been "paid", and capital has received the riskadjusted, expected return.
Description : Which of the following factors does not need to be considered when formulating policies on the level and financing of working capital? A. The attitude to risk of a company's managers B. ... C. The availability of revenue reserves and capital reserves D. Terms of trade offered by competitors
Last Answer : C. The availability of revenue reserves and capital reserves
Description : In order to maximize profits, a monopoly company will produce that quantity at which the: a. marginal revenue equals average total cost b. price equals marginal revenue c. marginal revenue equals marginal cost d. total revenue equals total cost
Last Answer : c. marginal revenue equals marginal cost
Description : 3. The demand for labor is the same as the a. marginal revenue product b. marginal physical product c. marginal cost d. wage
Last Answer : a. marginal revenue product
Description : A monopolist is able to maximise his profit when (a) his output is maximum (b) he charges higher prices (c) his average cost is minimum (d) his marginal cost is equal to marginal revenue
Last Answer : (d) his marginal cost is equal to marginal revenue
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
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.
Description : Gross profit is calculated by subtracting ________ from _________, a. operating expenses, net income b. sales discounts from sales revenue c. cost of goods sold, net sales revenue d. merchandise inventory, cost of goods sold
Last Answer : c. cost of goods sold, net sales revenue
Description : Ingrid's Fashions sold merchandise for $38,000 cash during the month of July. Returns that month totaled $800. If the company's gross profit rate is 40%, Ingrid's will report monthly net sales revenue and cost of goods ... b. $37,200 and $14,880. c. $37,200 and $22,320. d. $38,000 and $22,320.
Last Answer : c. $37,200 and $22,320.
Description : The sales revenue section of an income statement for a retailer would not include a. Sales discounts. b. Sales. c. Net sales. d. Cost of goods sold.
Last Answer : c. Net sales.
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 : Industri Industrial location analy al location analysis typically has a sis typically has a a)Cost focus b)Revenue focus c)Labor focus d)Environmental focus
Last Answer : d)Environmental focus
Description : Service / retail / professi Service / retail / professional location analy onal location analysis typically has a: sis typically has a: a)Cost focus b)Revenue focus c)Labor focus d)Environmental focus
Description : What is the m What is the major differe ajor difference in focus bet nce in focus between locat ween location decision ion decisions in the service sect s in the service sector and in or and ... minimization d)The focus in manufacturing is on raw materials, while the focus in service is on labour
Last Answer : c)The focus in service is revenue maximization, while the focus in manufacturing is cost minimization
Description : Which of the following are not among the eight components of revenue and volume for the service firm? a. quality quality of the management management b. shipment cost of finished goods c. ... the firm's and the competitor's competitor's locations locations e. competition competition in the area
Last Answer : b. shipment cost of finished goods
Description : A location location decision decision for a traditional traditional department department store (Macy's) (Macy's) would tend to have a(n) a. cost focus b. labor focus c. revenue focus d. environmental environmental focus
Last Answer : c. revenue focus
Description : A location location decision decision for an appliance appliance manufacturer manufacturer would tend to have a(an) a. cost focus b. labor focus c. revenue revenue focus d. environmental focus e. education education focus
Last Answer : a. cost focus
Description : Rohit carrying on real estate business sold a piece of land for Rs.4,00,00,000 (cost Rs.3,50,00,000) then the type of receipt is ______ nature and profit on sale is a) Capital & transferred to capital ... L a/c c) Capital & transferred to P & L a/c d) Revenue & transferred to general reserve
Last Answer : b) Revenue & transferred to P & L a/c
Description : Which of the following cannot be treated as revenue expenditure? A. Cost of goods purchased for resale. B. Wages paid for the erection of plant and machinery. C. Obsolescence cost. D. Expenses incurred by way of repairs of existing assets which do not in any way add to their earning capacity.
Last Answer : B. Wages paid for the erection of plant and machinery.
Description : While computing the actual cost of any asset falling within a block, portion of cost of asset which has been met directly by the central government or a state government or any authority under any law ... price b) Subtracted from purchase price c) Added to WDV d) Claimed as Revenue Expenditure
Last Answer : b) Subtracted from purchase price
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
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 : 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
Description : ------------- centre is one for which both revenue and cost are accumulated a) Cost centre b) Revenue centre c) Service centre d) Profit centre
Last Answer : d) Profit centre
Description : A segment of activity or area of operation for which revenues are accumulated is known as ------ a) Cost centre b) Profit centre c) Revenue centre d) Investment centre
Last Answer : c) Revenue centre
Description : A segment of activity for which both revenue and cost are accumulated a) Investment centre b) Project centre c) Cost centre d) Responsibility centre
Last Answer : b) Project centre
Description : When marginal cost is equal to marginal revenue, the firm should A)produce more to increase profits. B)produce less to decrease total costs. C)stop producing additional units to maximise profits. D)provide discounts to encourage purchases.
Last Answer : C)stop producing additional units to maximise profits.
Description : Most pricing objectives based on ---- are achieved by trial and error because not all the cost and revenue data are available when prices are set. A)market share B)cash flow C)return on investment D)survival E)profit
Last Answer : C)return on investment
Description : Difference between average cost and average revenue is (a) total profit (b) net profit © average profit (d) marginal profit
Last Answer : © average profit
Description : Total profit of a firm in a perfect competitive market is – (a) Total revenue less total cost ; (b) Marginal revenue less marginal cost; (c) Total revenue less marginal cost ; (d) Total revenue less variable cost
Last Answer : (a) Total revenue less total cost ;
Description : For a monopoly firm market demand curve is (a) Marginal revenue curve itself ; (b) Average Revenue curve itself ; (c) Marginal cost curve (d) None
Last Answer : (b) Average Revenue curve itself ;