1. The margin of safety can be calculated using the formula

2. Statement-1:
At the time of replacement of plant, according to marginal cost technique, the proposal which yields the lowest contribution is to be selected.
Statement-II:
According to the total cost technique, the proposal which involves the highest costs is to be selected.
Select the correct answer from the following

3. Contribution is the difference between:

4. Assertion (A):
In management accounting, firm decisions on pricing policy can be taken.
Reason (R):
As the marginal cost per unit is constant from period to period within a short span of time.
Select the correct answer from the option given below

5. Which of the following techniques of costing is also known as out-of-pocket costing

6. June Under marginal costing system, product costs are:

7. June Prime cost plus variable overheads gives:

8. Cost-volume-profit (CVP) analysis is based on several assumptions. Which one of the following is not relevant for such an analysis

9. Based on cost accounting information, which is the tool of Management Accounting for decision-making

10. Profits in a company can be increased by:
(1) Decreasing the selling price per unit
(2) Increasing the selling price per unit
(3) Decreasing the volume of sales
(4) Increasing the volume of sales
(5) Decreasing the fixed or variable expenses
(6) Increasing the fixed or variable expenses
(7) Giving more weightage for products having a higher P/V ratio
(8) Giving less weightage for products having a higher P/V ratio
Select the correct answer from the options given below

11. Margin of safety in a company can be improved by:
(1) Reducing the fixed cost and variable cost
(2) Increasing sales volume and price of sales
(3) Increasing stock of material in the expectation of price rise
(4) Expanding business to fulfil the demand of the market
(5) Changing the product mix to increase contribution.
Select the correct answer from the options given below

12. Statement-I:
Break-even analysis has gradually become a popular service tool for modern financial management.
Statement-II:
No concrete limitations have been raised anywhere against the utility of break-even analysis.
Select the correct answer from the option given below:

13. Which of the following formula cannot be used for calculating the P/V ratio

14. The margin of safety is ₹ 8,000 which represents 40% of sales. The P/V ratio is 50%. Fixed cost will be

15. Profit-Volume ratio can be improved by

16. Consider the following statements:
(1) Marginal costing and absorption costing are the same.
(2) For decision-making, absorption costing is more suitable than marginal costing.
(3) Cost-volume-profit relationship also denotes the break-even point.
(4) Marginal costing is based on the distribution between fixed and variable costs.
Which of the statements given above are correct

17. Statement -1
When there are no inventories, the profit figure under marginal costing and absorption costing is identical.
Statement – II
Inventories are valued at cost of production in absorption and marginal costing systems.
Select the correct answer from the options given below

18. Assertion (A):
The business earns a surplus of sale revenue over variable costs, which is called a contribution.
Reason (R):
Once fixed costs are fully recovered such excess contribution is termed as profit.
Select the correct answer from the options given below

19. Statement I:
When a factory operates at full capacity, Fixed cost also becomes relevant for make or buy decision.
Statement II:
The margin of safety is the difference between actual sales and standard sales.
Select the correct answer from the options given below:

20. A firm manufactures 15,0 units per annum, each taking 1.5 direct labour hours. The direct labour rate is ₹ 8 per hour and pays rise of 15% is awarded halfway through the year.
What is the total annual direct labour budget amount

21. Make or buy decisions are made by comparing cost with the outside purchase price

22. The costing method in which fixed factory overheads are added to inventory is known as

23. Statement I:
The margin of safety represents the difference between the sales at the breakeven point and the total sales.
Statement II:
Margin safety can be expressed as a percentage of total sales or in value or in terms of quantity.
Codes:

24. Statement-I:
The margin of safety represents the difference between sales at the break-even point and total sales.
Statement-II:
The margin of safety can be expressed as a percentage of total sales or in value or in terms of quantity.
Select the correct answer from the options given below

25. A company that has a margin of safety of ₹ 4,00,000 makes a profit of ₹ 1,00,000. If its fixed cost is ₹ 5,00,000, then break-even sales are: