Assertion (A): From the marginal costing approach point of view, the marginal cost is compared with the purchase price.<br>Reason (R): If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.

From the following two statements of Assertion (A) and Reason (R), indicate the correct answer.
Assertion (A) From the marginal costing approach point of view, the marginal cost is compared with the purchase price.
Reason (R) If the marginal cost is less than the purchase price it should be purchased rather than manufactured.

A

Both (A) and (R) are correct

B

(A) is correct, but (R) is not correct

C

(A) is not correct, but (R) is correct

D

Both (A) and (R) are incorrect

From the following two statements of Assertion (A) and Reason (R). Indicate the correct option.
Assertion (A) From the marginal costing approach point of view, the marginal cost is compared with the purchase price.
Reason (R) If the marginal cost is less than the purchase price, it should be purchased rather than manufactured.

A

Both (A) and (R) are correct

B

(A) is correct, but (R) is not correct

C

(A) is not correct, but (R) is correct

D

Both (A) and (R) are incorrect

Which of the following statements are true?
1. Marginal costing is not an independent system of costing.
2. In marginal costing, all fundamentals of cost are divided into fixed and variable components.
3. In marginal costing, fixed costs are treated as product cost.
4. Marginal costing is not a technique of cost analysis.

A

Both 4 and 1

B

Both 2 and 3

C

Both 1 and 2

D

Both 2 and 4

Consider the following statements.
1. Marginal costing and absorption costing are the same.
2. For decision-making, absorption costing is more suitable than marginal costing.
3. Marginal costing is based on the distinction between fixed and variable costs.
Which of the statement(s) given above is/are correct?

A

Both 1 and 2

B

Both 2 and 3

C

Both 1 and 3

D

None of these

Study the following information and answer the questions. Point A is 8m to the west of Point B. Point C is 4m to the south of Point B. Point D is 4m to the east of Point C. Point F is 6m to the north of Point D. Point E is 8m to the west of Point F. Point G is 2m to the south of Point E. How far and in which direction is Point G from Point A?

A

4m to the east

B

8m to the west

C

4m to the west

D

8m to the east

Study the following information and answer the questions. Point A is 8m to the west of Point B. Point C is 4m to the south of Point B. Point D is 4m to the east of Point C. Point F is 6m to the north of Point D. Point E is 8m to the west of Point F. Point G is 2m to the south of Point E. If point G is 4m to the north of Point H, then what is the distance between H and D?

A

11m

B

8m

C

6m

D

4m

A shopkeeper has 11 books of same cost price. He sells the first book at certain price, then he sells second book at a price which is Rs. 1 less than the selling price of first book and then he sells third book at a price which is Rs. 1, less than the selling price of second book. Following this pattern, he sold all 11 books. If he sells sixth book at its cost price. Find the over-all percent profit or loss on selling all 11 books = ?

A

20%

B

10%

C

$$\frac{1}{{11}}$$%

D

No profit no loss

At a certain bookstore , the regular price of each book is 20 percent less than its list price. If during a sale the price of each book at the store was 15 percent less than its regular price, then the price of a book during the sale was what percent less than its list price ?

A

30%

B

32%

C

35%

D

38%

A person purchased 10 shirts costing Rs 150 per shirt. Next day he again purchased the shirts costing Rs 150 per shirt at a discount of Rs 30 per shirt and that day he spent a toal of Rs 1800. What is the average cost per shirt (in Rs)?

A

125

B

132

C

138 \

D

144

Marginal cost is equal to marginal revenue, average cost is equal to average revenue, average revenue is equal to marginal revenue and average cost is equal to marginal cost. This is the condition of
1. long period equilibrium for a firm under monopoly
2. short period equilibrium for a firm under oligopoly
3. long period equilibrium
4. long period equilibrium for a firm under perfect competitions
Select the correct answer

A

Both 1 and 4

B

Both 3 and 4

C

Both 3 and 1

D

Only 1