38. An increase in variable cost will lead to:

CS Executive · Cost and Management Accounting · PYQS · June 2021
38. An increase in variable cost will lead to:
(A) an increase in P/V ratio
(B) an increase in profit
(C) a reduction in contribution
(D) an increase in margin of safety

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Marginal Costing

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