Cost Account Aurel Commerce Classes

Marginal costing helps to decide break even point.

• True

• False

Variable cost varies with the change in the volume of output.

• TRUE

• FALSE

Profit is equal to contribution.

• TRUE

• FALSE

Standard cost is pre-determined cost.

• TRUE

• FALSE

Variance is a difference between standard and actual cost.

• TRUE

• FALSE

Standard cost indicates cost actually incurred.

• TRUE

• FALSE

Compute contribution if sales is Rs. 4,00,000, fixed cost is Rs. 1,00,000 and Variable cost is Rs. 2,00,000

• Rs. 3,00,000

• Rs. 2,00,000

• Rs. 1,00,000

• Rs. 4,00,000

Calculate fixed cost from the details given: sales – Rs. 4,80,000, Direct materials – Rs. 1,60,000, Direct labour – Rs. 1,00,000, Variable OH – Rs. 40,000 & Profit – Rs. 1,00,000.

• 3,00,000

• 1,80,000

• 3,80,000

• 80,000

An increase in fixed cost results in _____

• Increase in margin of safety

• Increase in break even point

• Increase in contribution

• Increase in P/V ratio

A point at which there is neither profit nor loss

• No profit no loss point

• Break even point

• Margin of safety

• Contribution