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Q4. When sales and production (in units) are same then profit unde
1. Marginal costing is higher than that of absorption costing.
2. Marginal costing is lower than that of absorption costing.
3. Marginal costing is equal to that of absorption costing.
4. None of the above.
Answer: 3
Q5. When sales exceed production (in units) then profit under:
1. Marginal costing is higher than that of absorption costing.
2. Marginal costing is lower than that of absorption costing.
3. Marginal costing is higher than that of absorption costing.
4. Marginal costing is lower than that of absorption costing.
Answer: 1
Q6. If P/V ratio is 40% of sales then what about the remaining 60%
sales:
1. Profit.
2. Fixed cost.
3. Variable cost.
4. Margin of safety.
Answer: 3
Q7. The P/V ratio of a product is 0.6 and profit is ₹ 9,000. The marg
of safety is:
1. ₹ 5,400
2. ₹ 15,000
3. ₹ 22,500
4. ₹ 3,600
Answer: 2