The formula 'Fixed Cost / Contribution Margin per Unit' is used to find: MCQ with Answer and Explanation

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The formula 'Fixed Cost / Contribution Margin per Unit' is used to find:

A. Break-Even Point in Sales Value

B. Margin of Safety

C. Break-Even Point in Units

D. Target Profit

Answer: Option C

Solution (By JKSSB Mock Tests)

This formula yields the exact number of units a company needs to sell to cover all its fixed and variable costs.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'Form 26QB' is related to:

A. TDS on salary

B. TDS on purchase of immovable property (Section 194-IA)

C. TDS on rent

D. Advance tax

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Correct Answer: Option B

Explanation:
Form 26QB is the challan-cum-statement for TDS on property purchase.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

Capital expenditure is recorded in:

A. Manufacturing Account

B. Balance Sheet

C. Profit & Loss Account

D. Trading Account

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Correct Answer: Option B

Explanation:
Capital expenditure results in acquisition of assets, shown on the asset side of Balance Sheet.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

The 'National Financial Reporting Authority' (NFRA) has jurisdiction over:

A. Only banks

B. Only public sector undertakings

C. Public interest entities (listed companies and large unlisted companies)

D. All companies

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Correct Answer: Option C

Explanation:
NFRA regulates auditors and audit quality of public interest entities.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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