Marginal Costing and Break-even Analysis MCQs - Page 3

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Which one of the following is not correct?

A P/V Ratio $$ = \frac{{{\text{Change in Contribution}}}}{{{\text{Change in sales}}}} \times 100$$ B Required sales to earn desired profits $$ = \frac{{{\text{Desired profit}}}}{{{\text{P/V ratio}}}}$$ C Margin of Safety $$ = \frac{{{\text{Profit}}}}{{{\text{P/V ratio}}}}$$ D Break-even point in units $$ = \frac{{{\text{Fixed cost}}}}{{{\text{Contribution per unit}}}}$$

What is the impact of an increase in fixed costs on a company's financial metrics?

A company aims for a 25% P/V ratio. If the variable cost per unit is Rs. 300, what is the required selling price?

Which of the following is not a formula of P/V Ratio?

A $${\text{P/V Ratio}} = \frac{{{\text{S}} - {\text{V}}}}{{\text{S}}} \times 100$$ B $${\text{P/V Ratio}} = \frac{{{\text{Change in Profit}}}}{{{\text{Change in Total Cost}}}} \times 100$$ C $${\text{P/V Ratio}} = \frac{{\text{F}}}{{{\text{BEP(Rs}}{\text{.)}}}} \times 100$$ D $${\text{P/V Ratio}} = \frac{{{\text{Profit}}}}{{{\text{MOS}}}} \times 100$$

How does an increase in the selling price of a product affect the Break-Even Point (BEP)?

Calculate the break-even output for a boat manufacturer with monthly fixed costs of Rs. 260,000, a selling price of Rs. 35,000 per boat, and a variable cost of Rs. 15,000 per boat.

What financial metric is derived by dividing total profit by the Profit-Volume (P/V) ratio?

Calculate the Break-Even Point (BEP) given that the fixed costs are Rs. 10,000 and the Profit-Volume (P/V) ratio is 20%.

What is the definition of the Break-Even Point (BEP) in cost accounting?

Which specific component of a cost function is estimated using the high-low method?

Marginal Costing and Break-even Analysis MCQs for Competitive Exams

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