MBA (Semester =) mato Objective Questions 82. The strength of any business can very well be judged by referring to the size of _ (@) Net profit (6) Total turnover (©. Marginal cost (d) Margin of safety 83. A higher P/V Ratio reflects profitability (@) Greater (b) Normal (© Gross (@ Lower 84. The margin of safety at break-even point is always (@) More (b) Zero (©) Less (2) Substantial 85. Actual sales % 1,50,000, Break-even sales % 1,00,000. The margin of safety in percentage will be @ 25% (b) 66.67% (©) 3333% (a) 50% 86, Variable costs, vary directly in proportion to change in @ Management policy (b) Market condition © Rigid costs (d) Volume of output 87. The principles of marginal costing are based on a mathematical equation as “_ (@) S-V=F+P (b) S=FePty (© S-Fev+P (@ S=FeV-b 88. The technique of Marginal Costing emphasises the, classification of cost. (a) Elementwise (b) Behavioural (© Normality (@) functional 89, In marginal costing, only variable costs are considered as (@) Period costs (b) normal Costs (© Product costs (@) Abnormal costs 90, A strategic technique for short-term decision making is known as {a) Uniform Costing (b) Standard Costing {© Target Costing (¢) Marginal Costing 91, Cost-volume-proft analysis isan extension of {@) Marginal Costing (©) Activity Base Costing (©) Affordable Costing (d) Absorption Costing