Q. Sales for desired profit is measured as
✅ Correct Answer: (A)
(Fixed cost + profit)/ (P/V Ratio)
Management Accounting MCQs and Notes
Q. P/V ratio can be calculated on the basis of variable cost ratio as
✅ Correct Answer: (A)
1 - Variable Cost Ratio
Q. The P/V ratio can be improved by
✅ Correct Answer: (C)
Changing the sales mix
Q. Which of the following statements are true?
✅ Correct Answer: (C)
Concept of P/V ratio is also used to determine profit at a given volume of sales
Q. Profit-Volume ratio is also known as
✅ Correct Answer: (D)
All of the above
Q. Which of the following statements are true?
✅ Correct Answer: (C)
Contribution above breakeven point becomes profit.
Q. Determine Contribution if Sales is Rs 1,50,000 and P/V ratio is 40%.
✅ Correct Answer: (A)
Rs 60,000
Q. Contribution is also known as
✅ Correct Answer: (A)
Contribution margin
Q. Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost is Rs 5,000. What is break-even point?
✅ Correct Answer: (C)
1,250 units
Q. Using equation method, Break-even point is calculated as
✅ Correct Answer: (A)
Sales = Variable expenses + Fixed expenses + Profit