A decrease in the contribution: sales ratio
A decrease in the contribution per units
An increase in the break-even point sales level
An increase in the margin of safety
CS ratio remains unchanged
CS ratio rises from 0.45 to 0.50
CS ratio rises from 0.45 to 0.46
CS ratio fall from 0.45 to 0.44
Include only variable production overheads.
Include a share of all production overheads.
Include a share of variable overheads ( production and non-production )
Include a share of all production and non-production overheads
Include variable production and variable non-production overheads
Include expenditure incurred in bringing the stock to its present location and condition.
Include variable production overhead costs plus direct product costs only.
Include prime costs only.
It enables the profit statement to focus on contributions earned from sales.
It includes variable administration, selling, and distribution costs in stock value.
It excludes non- production costs from stock value.
It includes fixed production overheads in stock value.
Greater than that where absorption costing is applied
Lower than that, where absorption costing is applied.
The same is where absorption costing is applied.
Greater, lower, or the same as that where absorption costing is applied
Profit reported each month always fluctuates in proportion to units produced.
Absorption cost stock valuation will lead to a higher profit being reported where sales exceed production.
Marginal cost stock valuation will give a higher profit where sales exceed production.
Marginal cost stock valuation will result in the same profit being reported each month.
Rs.450 higher under absorption costing
Rs.150 higher under absorption costing
Rs.225 higher under absorption costing
Rs.300 higher under absorption costing
Absorption cost based on normal activity
Decrease net profit only where absorption costing is used
Decrease net profit only where marginal costing is used
Decrease net profit equally in both absorption and marginal costing
Leave net profit unchanged in both cases.
The quantity of all units in inventory times the relevant fixed cost per unit.
The quantity of all units in the inventory times relevant variable cost per unit.
The quantity of all units produced times the relevant fixed cost per units.
The quantity of all units produced times the relevant variable cost per units.
Fact that standard cost can be used with absorption costing but not with direct costing.
Amount of cost assigned to the individual unit of product.
Kinds of activities for which each can use to report.
Amount of fixed cost that will be incurred.
Units produced exceed units sold
Fixed manufacturing costs decrease
Variable manufacturing costs decrease
Units sold exceed units produced
Job order costing
Full or absorption costing
Including only direct costs in the income statement
Eliminating the work-in-process inventory account
Matching variable cost against revenues and treating fixed cost as period cost
Treating all costs as period costs
Prime costs only.
Prime costs and variable factory overheads.
Prime costs fixed factory overheads.
None of the above
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