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Which of the following statements are the assumptions of marginal costing?<br>1. Per unit selling price remain unchanged at all levels of operating activity.<br>2. Total fixed cost remains constant for all the production units.<br>3. Total variable costs varies in proportion to the volume of output.<br>4. All the elements of cost can be divided into fixed and variable components.

Correct Answer: All of the above

"It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."

"What is the company's breakeven point:
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."

"How many units must be sold if company wants to achieve a profit of Rs 11,000 for the year?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."

"S produces and sells one product, P, for which the data are as follows:
Selling price Rs 28
Variable cost Rs 16
Fixed cost Rs 4
The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period. Due to market changes both the selling price and the variable cost are expected to increase above the budgeted level in the next period. If the selling price and variable cost per unit increase by 10% and 8% respectively, by how much must sales volume change, compared with the original budgeted level, in order to achieve the original budgeted profit for the period?"

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 small and medium enterprise imports two components A and B from Taiwan and China respectively and assembles them with other components to form a toy. Components A contributes to 10% of production cost while components B contributes to 20% of production cost. Usually the company sells this toy at 20% above the production cost. Due to increase in the raw material and labour cost in both the countries ,component A became 20% costlier and components B became 40% costlier. Owing to these reasons the company increased its selling price by 15%. Considering that cost of other components does not change. What will be the profit percentage if the toy is sold at the new price?

From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year.
Sales price: Rs. 25 per unit
Variable manufacturing costs: Rs. 12 per unit
Variable selling costs: Rs. 3 per unit
Fixed factory overheads: Rs. 5,00,000
Fixed selling costs: Rs. 3,00,000

If the labour cost 20% of the cost of production and raw material cost 10% of the cost of production and the price on which article is sold is 20% above the cost of production. If the price of labour is increased by 40% and the price of raw material increased by 20% and rest other expenditure of cost remain constant. The industrythus decide to increase the selling price by 10%. Find the new profit percent ?

Profits can be increased by
1. decreasing the selling price per unit.
2. increasing the selling price per unit.
3. decreasing the volume of sales.
4. increasing the volume of sales.
5. decreasing the fixed or variable expenses.
6. increasing the fixed or variable expenses.
7. giving more weightage for products having higher P/V ratio.
8. giving less weightage for products having higher P/V ratio.
Select the correct answer

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 = ?