Raj Ltd. furnishes the following information: Production : 10,000 units Sales : 5,000 units Selling price : ₹12 per unit Variable cost : ₹6 per unit Fixed costs : ₹40,000 per annum Profit/loss under marginal costing meth

CS Executive · Cost and Management Accounting · PYQS · December 2016
Raj Ltd. furnishes the following information: Production : 10,000 units Sales : 5,000 units Selling price : ₹12 per unit Variable cost : ₹6 per unit Fixed costs : ₹40,000 per annum Profit/loss under marginal costing method will be —
(A) ₹10,000 (Profit)
(B) ₹10,000 (Loss)
(C) ₹20,000 (Profit)
(D) ₹20,000 (Loss).

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Management Accounting

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