FM/Q9. State the assumptions made while plotting the Break-Even Analysis chart.

State the
connection between Break-even point, Margin of safety and Angle of incidence.
FM/Q11. A factory, producing only one item, which it sells for Rs. 12.50 per unit has a fixed
cost equal to Rs. 60,000 and variable cost Rs. 7.50 per unit. Find out (i) The number of units
to be produced to break even,. (ii) Number of units to be produced to earn a profit of Rs.
12,000.(iii) The profit, if 25,000 units are produced and sold.
FM/Q6. What is Profitability Index (PI)? Which is a superior ranking criteria, profitability
index or the present value?
FM/Q10. Describe the effect of increase and decrease of in fixed costs and variable cost on
Break Even Point with the help of neat sketches.
FM/Q12. What is Break Even Analysis? State the managerial uses of Break Even Analysis.
FM/Q5. Can net present value ever be negative? Why?
FM/Q4. What is the basic flaw in the payback model? How can the payback model be helpful
in capital budgeting?
FM/Q7. State the relationship between various elements of costs. Differentiate between Fixed
cost and Variable costs.

FM/Q8. What is cost estimating? State the objective of cost estimating.

FM/Q9. State the assumptions made while plotting the Break-Even Analysis chart. State the
connection between Break-even point, Margin of safety and Angle of incidence.
FM/Q1.Differentiate between costing and cost estimating. Describe the various methods of
costing.
FM/Q2. Differentiate between Prime Cost and Overhead Cost with suitable examples.
FM/Q3. State a rule that can serve as a general guide to capital-budgeting decisions.
FM/Q1 TO FM/Q9

By VIKASH