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. Target Profit

B. Break-Even Point in Units

C. Margin of Safety

D. Break-Even Point in Sales Value

Answer: Option B

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 GST Composition Scheme is designed primarily to benefit:

A. E-commerce operators

B. Large multinational corporations

C. Small taxpayers by reducing compliance burden

D. Exporters

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Correct Answer: Option C

Explanation:
It allows small businesses (up to a certain turnover) to pay a fixed percentage of turnover as tax and file simpler, less frequent returns.

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Question #2

For inter-state supply of goods and services, which of the following is levied?

A. IGST

B. CGST

C. Both CGST and SGST

D. SGST

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Correct Answer: Option A

Explanation:
Integrated GST (IGST) is collected by the Central Government on inter-state sales and imports.

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Question #3

The system of accounting where revenue is recognized only when cash is received is:

A. Cash basis

B. Mercantile system

C. Accrual basis

D. Hybrid system

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Correct Answer: Option A

Explanation:
Under the cash basis of accounting, transactions are recorded strictly upon the actual receipt or payment of cash.

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

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