To calculate the Break-Even Point in units, Fixed Costs are divided by: MCQ with Answer and Explanation

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To calculate the Break-Even Point in units, Fixed Costs are divided by:

A. Total cost per unit

B. Variable cost per unit

C. Contribution per unit

D. Selling price per unit

Answer: Option C

Solution (By JKSSB Mock Tests)

BEP (Units) = Total Fixed Costs / Contribution per unit. It shows how many units must be sold to cover all fixed costs.

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

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Money kept in Provident Funds and small savings schemes forms part of the:

A. Public Account of India

B. Consolidated Fund of India

C. RBI Reserves

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Correct Answer: Option A

Explanation:
The Public Account holds money acting as a banker (e.g., provident funds) and does not require parliamentary vote for disbursements.

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Question #2

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Correct Answer: Option A

Explanation:
PFMS facilitates direct benefit transfers and real-time tracking of government funds.

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Question #3

S1: The Trading Account shows the gross profit or loss. S2: The Profit and Loss Account shows the net profit or loss. Which statement(s) is/are correct?

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Correct Answer: Option D

Explanation:
The Trading Account calculates Gross Profit/Loss by matching direct expenses with net sales. The Profit and Loss Account calculates Net Profit/Loss by matching all indirect expenses and incomes with the Gross Profit. Both are correct.

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