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WorksheetsMarginal Costing Perspicacious
Total questions: 20
Worksheet time: 10mins
The total variable cost change _________________________with change in output
Consistently
Constantly
Proportionately
Un proportionately
Fixed cost + profit =
Semi - variable cost
Margin of safety
Contribution
Standard profit
An increase in variable costs results in
An increase in P/V Ratio
Reduces contribution
Increase in Profit
None of the above
When fixed cost is Rs.20,000 and P/V Ratio is 40%, the breakeven point will be
75,000
40,000
20,000
50,000
Marginal cost is also known as
Absorption cost
Standard cost
Variable cost
None of the above
Margin of Safety is the difference between the
Planned sales and the planned profit
Actual sales and Break even sales
Planned sales and the break even sales
None of the above
Contribution margin is also known as
Marginal income
Gross Profit
Net Profit
All of the above
_________________________________ is the excess of sales over the break even sales.
Contrbution
Fixed cost
Variable cost
Margin of Safety
Fixed cost is also known as______________________________
Flexible cost
Marginal cost
Period cost
All of the above
if the total cost of 100 units is Rs. 5,000 and those of 101 units is Rs. 5,040 then increase of Rs. 40 in total cost is
Marginal cost
Prime cost
Fixed cost
None of the above
Contribution is calculated by the formula
Sales minus profit
Sales minus variable cost
Fixed cost minus profit
None of the above
P/V Ratio is an indicator of
the measurement of rate at which goods and services are bought and sold
the measurement of change in profit due to change in volume of sales
the measurement of volume of profit to be earned
None of the above
Break Even Point refers to the point in which
total cost is equal to fixed cost
total cost is equal to total revenue
total cost is equal to contribution
total cost is equal to variable cost
A high margin of safety indicates that
over production
business is dull
over capitalisation
business is going on well
Marginal costing technique classifies cost into
variable cost and fixed cost
operation and Maintainance cost
semi-variable cost
standard and floating cost
Marginal costing helps the management to
Fix the price of products
Take various decisions
Calculate profit
All the above
which is not included in primecost?
Raw materials
Manager Salary
Labour expenses
Coal
Prime cost + all variable cost =
Fixed cost
Marginal cost
Absorbtion cost
All of the above
If PVR=40%, MOS=50%, Sales=Rs.6,00,000. Find Net profit.
Rs 1,50,000
Rs 1,00,000
Rs.1,20,000
Rs.1,60,000
If margin of safety -20%, profit volume ratio -60%, Fixed cost = Rs.75,000. Find Actual sales.
Rs.1,25,000
Rs. 1,58,000
Rs. 1,50,250
Rs. 1,56,250
