Costing - Practice Test | ExamPrepSheets

[#376] A company makes a single product and incurs fixed costs of Rs 30,000 per annum. Variable cost per unit is Rs 5 and each unit sells for Rs 15. Annual sales demand is 7,000 units. The breakeven point is:

(A) 2,000 units

(B) 3,000 units

(C) 4,000 units

(D) 6,000 units

Correct Answer

(B) 3,000 units

Explanation

Solution: Break-Even Point (Units) = Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit) = 30000 ÷ (15 - 5) = 3000 units.

[#377] What is the gearing ratio if debt is Rs. 220, cash balance is Rs. 20, and equity is Rs. 300?

(A) 20%

(B) 40%

(C) 50%

(D) 30%

Correct Answer

(B) 40%

[#378] . . . . . . . . budget may be classified into material cost budget, labour cost budget and overhead budget.

(A) Cost of production

(B) Purchase

(C) Sales

(D) Cash

Correct Answer

(A) Cost of production

[#379] Material Costs of each job are determined from . . . . . . . .

(A) material requisition notes

(B) bill of materials

(C) Both A and B

(D) None of these

Correct Answer

(C) Both A and B

[#380] What is the average collection period when the debt turnover ratio is 4?

(A) 5 months

(B) 4 months

(C) 3 months

(D) 2 months

Correct Answer

(C) 3 months

Costing - Study Mode

[#376] A company makes a single product and incurs fixed costs of Rs 30,000 per annum. Variable cost per unit is Rs 5 and each unit sells for Rs 15. Annual sales demand is 7,000 units. The breakeven point is:

Correct Answer

Explanation

[#377] What is the gearing ratio if debt is Rs. 220, cash balance is Rs. 20, and equity is Rs. 300?

Correct Answer

[#378] . . . . . . . . budget may be classified into material cost budget, labour cost budget and overhead budget.

Correct Answer

[#379] Material Costs of each job are determined from . . . . . . . .

Correct Answer

[#380] What is the average collection period when the debt turnover ratio is 4?

Correct Answer