Statement-I : At the time of replacement of plant, according to marginal cost technique, the proposal which yields lowest contribution is to be selected. Statement-II : According to total cost technique, the proposal whi
CS Executive · Cost and Management Accounting · PYQS · December 2015
Statement-I : At the time of replacement of plant, according to marginal cost technique, the proposal which yields lowest contribution is to be selected. Statement-II : According to total cost technique, the proposal which involves the highest costs is to be selected. Select the correct answer from the options given below —
Answer & Explanation:
Correct Answer: Option (B)
Official answer key: (B).
Topics: Marginal Costing
Related Questions in this Topic
- 99. A factory is currently working at 50% of its capacity. At this level the variable, semi-variable and fixed expenses ...
- 91. When fixed cost is ₹8,000 and break-even point is ₹20,000, find the profit when sales is ₹30,000 :
- 78. Maximum quantity of production and minimum quantity of production is 10,000 and 5,000 units respectively. Maximum to...
- 46. P/V Ratio of a company is 17% and its Margin of Safety is ₹4,08,000, calculate the amount of profit to the company.
- 44. When the sales increased from ₹40,000 to ₹60,000, profit increased by ₹5,000. Calculate P/V ratio.