Numerical on responsibility accounting

Q.  There are three departments A, B and C in a company, The sales of A, B and C are Rs 3,52,000, Rs 2,88,000 and Rs 1,60,000, respectively. The variable costs of A, B and C are Rs 2,40,000, Rs 1,76,000 and Rs 1,44,000 respectively. The direct fixed costs of A, B and C are Rs 28,000, Rs 22,400 and Rs 12,800. Rank the different departments on basis of relative profitability.
- Published on 19 Oct 15

a. A- Rank 3, B- Rank 1 and C- Rank 2
b. A- Rank 2, B- Rank 1 and C- Rank 3
c. A- Rank 3, B- Rank 2 and C- Rank 1
d. Insufficient data

ANSWER: A- Rank 2, B- Rank 1 and C- Rank 3

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    Discussion

  • Adil Syed   -Posted on 12 May 21
    I didn't understand how?
  • abhishek   -Posted on 08 Jan 21
    nice
  • Jagadish   -Posted on 23 Aug 18
    Super, & good ans
  • Jagadish   -Posted on 23 Aug 18
    Super, & good ans
  • Dilip Kumar Jha   -Posted on 29 Aug 16
    Department A B C
    Sales 352000 288000 160000
    - V Cost 240000 176000 144000
    Contribution 112000 112000 16000
    - Fixed Cost 28000 22400 12800
    EBIT 84000 89600 3200
    So Company A Rank 2, B- Rank 1 and C- Rank 3

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