Profits in a company 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

CS Executive · Cost and Management Accounting · PYQS · December 2015
Profits in a company 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 from the options given below —
(A) (1), (3), (5) and (7)
(B) (2), (4), (6) and (8)
(C) (2), (4), (5) and (7)
(D) (1), (3), (6) and (8).

Answer & Explanation:

Correct Answer: Option (C)

Official answer key: (C).

Topics: Marginal Costing

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