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Question 1:- A Company sells a single product for Rs.28 per unit. If variable costs...

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Accounting

Question 1:- A Company sells a single product for Rs.28 per unit. If variable costs are 65% of sales and fixed costs total Rs.9,800, the break-even point will be:
a)15,077 units
b)18,200 units
c)539 units
d)1,000 units
Question 2:- What would be the margin of safety ratio based on the following information? Sales price= Rs.100 per unit; Variable cost= Rs.25 per unit and Fixed cost= Rs.50 per unit
a)25%
b)33.33%
c)66.66%
d)75%
Question 3:- Which of the following step is the 3rd step towards budgeting process?
a) Forecasting
b) Determination of Principle budget factor
c) Decision about the removal of constraints
d) Construction of budget on agreed basis
Question 4:- A company has sales of Rs.500,000 for the period. The selling expenses are estimated as 12% of sales. The gross profit for the period is amounting to Rs.150,000. Calculate the amount of selling expenses for the period?
a) Rs.60,000
b) Rs.45,000
c) Rs.90,000
d) Rs.210,000
Question 5:- Which of the following would NOT lead to an increase in net cash flow?
a) Larger sales volume
b) Higher selling price
c) Reduced material cost
d) Charging of lower depreciation

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