ACC 205 Marginal Costing Practice Questions Nitin Gadkari

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ACC 205 – Marginal Costing Practice Questions

ACC 205 – Marginal Costing Practice Questions

Nitin Gadkari calls for cutting road construction cost by 25% By: Chitsimran 2

Nitin Gadkari calls for cutting road construction cost by 25% By: Chitsimran 2

Learning Objectives: To practice how to calculate and apply marginal costing technique to manage

Learning Objectives: To practice how to calculate and apply marginal costing technique to manage and enhance the firm profits.

Question 1: • Sales = ₹ 10, 000 • Variable Cost = ₹ 8,

Question 1: • Sales = ₹ 10, 000 • Variable Cost = ₹ 8, 000 • Find P/V Ratio.

Question 2: YEAR SALES ₹ NET PROFIT₹ 2011 20, 000 1, 000 2012 22,

Question 2: YEAR SALES ₹ NET PROFIT₹ 2011 20, 000 1, 000 2012 22, 000 1, 600 Find PV Ratio.

Question 3: • Fixed cost = ₹ 12, 000 • SP = ₹ 12

Question 3: • Fixed cost = ₹ 12, 000 • SP = ₹ 12 Per unit • VC = ₹ 9 Per unit • Calculate Contribution, P/V Ratio, Break-even point (unit and rupees) • A) What will be the profit if sales are ₹ 60, 000 and ₹ 1, 000. • B) What will be the sales if desired profit is ₹ 6, 000 and ₹ 15, 000.

Question 4: • Break even point = ₹ 30, 000 • Profit = ₹

Question 4: • Break even point = ₹ 30, 000 • Profit = ₹ 1, 500 • Fixed cost = ₹ 6, 000 • Find variable cost.

Question 5: • Sales = 4000 units @ ₹ 10 each • Break-even point

Question 5: • Sales = 4000 units @ ₹ 10 each • Break-even point = 1500 units • Fixed cost = ₹ 3, 000 • Find variable cost and profit.

Question 6: • Fixed cost: ₹ 8, 000 • Profit = ₹ 2, 000

Question 6: • Fixed cost: ₹ 8, 000 • Profit = ₹ 2, 000 • Break-even sales = ₹ 40, 000 • Find actual sales.

Question 7: • Selling price = ₹ 150 • Variable cost = ₹ 90

Question 7: • Selling price = ₹ 150 • Variable cost = ₹ 90 • Fixed cost = ₹ 6, 000 • Find break-even point. • Find selling price if break even point is at 12, 000 units

Question 8: • VC = ₹ 75 • FC = ₹ 2, 70, 000

Question 8: • VC = ₹ 75 • FC = ₹ 2, 70, 000 • SP = ₹ 100 • Find SP if Break-even point is to be brought down to 9, 000 units.

Question 9: • Fixed expenses ₹ 4, 000 • Break – even point ₹

Question 9: • Fixed expenses ₹ 4, 000 • Break – even point ₹ 10, 000 • • Calculate: 1) P/V Ratio 2) Profit when sales are ₹ 20, 000 3) new break-even point if selling price is reduced by 20%.

Question 10: • • • Calculate margin of safety: 1) Break-even point 40%, Actual

Question 10: • • • Calculate margin of safety: 1) Break-even point 40%, Actual Sales ₹ 40, 000 2) Actual sales – 40, 000 units, break-even point 25, 000 units 3) Break-even point 75% 4) P/V ratio 40%, Profit ₹ 35, 000 5) Contribution per unit ₹ 20, Profit ₹ 15, 000.

Question 11: YEAR SALES ₹ PROFIT ₹ 2011 1, 20, 000 8, 000 2012

Question 11: YEAR SALES ₹ PROFIT ₹ 2011 1, 20, 000 8, 000 2012 1, 40, 000 13, 000 Find out: 1) P/V Ratio 2) B. E. Point 3) Profit, if sales are ₹ 12, 000 4) Sales required to earn a profit of ₹ 12, 000 5) Margin of Safety in year 2012

Question 12: Particulars First Half Second Half Sales ₹ 24, 000 ₹ 30, 000

Question 12: Particulars First Half Second Half Sales ₹ 24, 000 ₹ 30, 000 Total Cost ₹ 21, 80, 000 ₹ 26, 000 Find: 1) Contribution/Sales Ratio 2) Annual Fixed cost 3) Break-even point 4) Margin of Safety as percentage of Sales

“ ” Back exercise: Q 4, 5, 6, 9, 10, 12, 13, 14, 20,

“ ” Back exercise: Q 4, 5, 6, 9, 10, 12, 13, 14, 20, 21