Marginal Costing and Break-even Analysis MCQs

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101

In Cost-Volume-Profit (CVP) analysis, which of the following does not directly impact the net profit calculation?

102

When all underlying assumptions of simple regression analysis are satisfied, what is the expected outcome regarding the model's estimates?

103

Which of the following formulas regarding cost-volume-profit analysis is mathematically incorrect?

A $$\frac{{\text{P}}}{{\text{V}}}{\text{ratio}} = \frac{{{\text{Change in contribution}}}}{{{\text{Change in sales}}}} \times 100$$ B $${\text{Margin of Safety}} = \frac{{{\text{Profit}}}}{{\frac{{\text{P}}}{{\text{V}}}{\text{ratio}}}}$$ C $${\text{Breakeven point in units}} = \frac{{{\text{Fixed Cost}}}}{{{\text{Contribution per unit}}}}$$ D $${\text{Required sales to earn the desired profits}} = \frac{{{\text{Desired Profit}}}}{{\frac{{\text{P}}}{{\text{V}}}{\text{ratio}}}}$$

104

How is the margin of safety defined in cost accounting?

A Difference between actual sales and fixed cost B Difference between actual sales and Break Even sales C Difference between actual sales and variable cost D Difference between actual sales and total cost

105

When calculating the target cost per unit, what value is subtracted from the target price?

106

Match the following cost-volume-profit concepts in List-I with their descriptions in List-II: a. Excess of actual sales over break-even sales, b. Sum of fixed cost and profit, c. Break-even chart, d. Break-even point.

107

Given sales of Rs. 4,00,000, fixed costs of Rs. 1,80,000, and variable costs of Rs. 2,00,000, what is the Break-Even Point (BEP) in sales value?

108

Product P has a selling price of Rs 28, variable cost of Rs 16, and fixed cost of Rs 4 (based on 25,000 units). If the selling price increases by 10% and variable cost by 8%, what change in sales volume is required to maintain the original budgeted profit?

109

Evaluate the following statements regarding cost accounting methods: 1. Marginal and absorption costing are identical. 2. Absorption costing is superior for decision-making. 3. Marginal costing distinguishes between fixed and variable costs. Which statements are correct?

110

Which factor is used to divide fixed costs to determine the break-even point in monetary terms (rupees)?

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