Break-even Analysis - Part 3 - MCQs with answers
Break-even Analysis - Part 3 - MCQs with answers
1. P/V ratio can be calculated on the basis of variable cost ratio asa) 1 - Variable Cost Ratio
b) 1 + Variable Cost Ratio
c) 1/Variable Cost Ratio
d) None of the above
View Answer / Hide AnswerANSWER: a) 1-Variable Cost Ratio
a) 40%
b) 25%
c) 50%
d) None of the above
View Answer / Hide Answer3. Determine P/V ratio if Sales is Rs 1,00,000, Fixed cost is Rs 30,000 and Profit is Rs 20,000.a) 25%
b) 50%
c) 45%
d) None of the above
View Answer / Hide Answer4. Determine P/V ratio if Sales per unit is Rs 10 and Variable cost per unit is Rs 7.a) 25%
b) 50%
c) 45%
d) 30%
View Answer / Hide Answer5. Compute P/V ratio if variable cost ratio is 60%.a) 40%
b) 50%
c) 45%
d) 30%
View Answer / Hide Answer6. Given sales is Rs 2,00,000 and Rs 4,00,000 in year 2013 and 2014 respectively. Profit is Rs -10,000 and Rs 20,000 in 2013 and 2014 respectively. Compute P/V ratio.a) 40%
b) 30%
c) 25%
d) 50%
View Answer / Hide Answer7. Given sales is Rs 2,00,000 and Rs 4,00,000 in year 2013 and 2014 respectively. Cost is Rs 1,40,000 and Rs 2,40,000 in 2013 and 2014 respectively. Compute P/V ratio.a) 40%
b) 30%
c) 25%
d) 50%
View Answer / Hide Answer8. A company produces and sells three types of products namely X, Y and Z. Total sales per month is Rs 60,000 in which the share of these three goods are 40%, 40% and 20% respectively. Variable costs of these three goods are 40%, 50% and 60% respectively. Compute combined P/V ratio. a) 40%
b) 52%
c) 25%
d) 50%
View Answer / Hide Answer9. Profit on sales is measured as a) Sales*P/V Ratio – Fixed cost
b) Sales*P/V Ratio + Fixed cost
c) Sales + P/V Ratio + Fixed cost
d) None of the above
View Answer / Hide AnswerANSWER: a) Sales*P/V Ratio – Fixed cost
a) (Fixed cost + profit)/ (P/V Ratio)
b) (Fixed cost + profit) * (P/V Ratio)
c) (Fixed cost - profit)/ (P/V Ratio)
d) None of the above
View Answer / Hide AnswerANSWER: a) (Fixed cost + profit)/ (P/V Ratio)
