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Ques:- 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.
Right Answer:
Combined P/V ratio = 25%
Ques:- What is the use of Absorption costing?
Right Answer:
Absorption costing is used to capture all manufacturing costs, both fixed and variable, in the cost of a product. This method helps in determining the total cost of production and is essential for inventory valuation and financial reporting.
Ques:- During the year, a business was bought by issue of Rs 25,000 debentures and Rs 25,000 shares. The business bought had machine worth Rs 20,000, Debtors Rs 15,000, Stock Rs 5,000 and Creditors Rs 5,000. Determine the effect of this transaction on flow of funds.
Right Answer:
The effect of this transaction on the flow of funds is an inflow of Rs 50,000 (from debentures and shares) and an outflow of Rs 35,000 (for assets minus liabilities: Rs 20,000 + Rs 15,000 + Rs 5,000 - Rs 5,000). Therefore, the net effect on the flow of funds is an inflow of Rs 15,000.
Comments
DK BOSS Jul 17, 2021

Net inflow of Rs 15,000

Ques:- A box manufacturer discovers that while it costs Rs 6.25 per unit to make a component T the same is available in the market at Rs 5.75 each. There is reliability of regular supply. The breakdown of costs is materials is Rs 2.75 per unit, Labor is Rs 1.75 per unit, Other variable expenses is Rs 0.50 and depreciation and other fixed costs is Rs 1.25. Will you make or buy?
Right Answer:
Buy the component T, as it is cheaper at Rs 5.75 compared to the manufacturing cost of Rs 6.25.
Ques:- Determine P/V ratio if Sales is Rs 80,000 and Variable cost is Rs 60,000.
Asked In :-
Right Answer:
P/V ratio = (Sales - Variable Cost) / Sales = (80,000 - 60,000) / 80,000 = 25%.
Ques:- What is the meaning of TDS? How it is charged?
Right Answer:
TDS stands for Tax Deducted at Source. It is a tax that is deducted by the payer at the time of making certain payments, such as salaries, interest, or professional fees, and is then deposited with the government. The rate of TDS varies depending on the type of payment and the applicable tax laws.
Ques:- Determine Contribution if Fixed cost is Rs 50,000 and loss is Rs 20,000.
Asked In :-
Right Answer:
Contribution = Fixed Cost + Loss = Rs 50,000 + Rs 20,000 = Rs 70,000.
Ques:- The formula to calculate material price variance is?
Asked In :- sa power networks, bse,
Right Answer:
Material Price Variance = (Actual Price - Standard Price) × Actual Quantity Purchased
Ques:- Material cost variances is measured as?
Right Answer:
Material cost variances are measured as the difference between the actual cost of materials used and the standard cost of materials that should have been used for the actual level of production.


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