If Sales are Rs 1,00,000, Variable Cost is Rs 60,000, what is the Contribution Margin Ratio (P/V Ratio)? MCQ with Answer and Explanation

Question
If Sales are Rs 1,00,000, Variable Cost is Rs 60,000, what is the Contribution Margin Ratio (P/V Ratio)?
A. 60%
B. 20%
C. 40%
D. 100%
Answer: Option C
Solution (By JKSSB Mock Tests)
Contribution = Sales - Variable Cost = 40,000. P/V Ratio = (Contribution / Sales) * 100 = 40%.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The threshold limit for paying Advance Tax is when the estimated tax liability for the year is:
A. Rs 50,000 or more
B. Rs 5,000 or more
C. Rs 20,000 or more
D. Rs 10,000 or more
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Correct Answer: Option D

Explanation:
If the estimated tax liability (after TDS) exceeds Rs 10,000, the taxpayer is obligated to pay advance tax in installments.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which constitutional body recommends the distribution of net proceeds of taxes between the Union and the States?
A. NITI Aayog
B. GST Council
C. Public Accounts Committee
D. Finance Commission
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Correct Answer: Option D

Explanation:
Constituted under Article 280, the Finance Commission makes recommendations regarding the sharing of tax revenues.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Rotation of Audit Partners' for listed companies is required every:
A. 7 years (as per Companies Act 2013, audit firm rotation for certain companies, partner rotation for listed companies)
B. No rotation
C. 10 years
D. 5 years
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Correct Answer: Option A

Explanation:
Companies Act 2013 mandates partner rotation for listed companies.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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