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Questions and Answers
What is the result of subtracting the variable cost per unit from the selling price per unit?
What is the result of subtracting the variable cost per unit from the selling price per unit?
- Profit - Volume ratio
- Prime cost
- Margin of safety
- Contribution (correct)
What is the difference between the standard cost and the actual cost, if the standard cost is lower?
What is the difference between the standard cost and the actual cost, if the standard cost is lower?
- Margin of safety
- Contribution
- Profit - Volume ratio
- Variance (correct)
Which of the following is not a component of prime cost?
Which of the following is not a component of prime cost?
- Direct material
- Royalty charge (correct)
- Direct labor
- Direct expenses
What is the cost per unit that increases or decreases when the volume of output increases or decreases?
What is the cost per unit that increases or decreases when the volume of output increases or decreases?
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What is the difference between the actual quantity and the standard quantity, multiplied by the standard price?
What is the difference between the actual quantity and the standard quantity, multiplied by the standard price?
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A company has a contribution to sales ratio of 20%. If the total sales of the company are ₹7,80,000, how much is the profit?
A company has a contribution to sales ratio of 20%. If the total sales of the company are ₹7,80,000, how much is the profit?
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