Question

    With respect to Marginal Costing, which of the following

    statement is incorrect?
    A (Break even sales value) × (profit volume ratio) = Fixed cost Correct Answer Incorrect Answer
    B Contribution = Sales – Variable Cost Correct Answer Incorrect Answer
    C (Margin of safety value) × (profit volume ratio) = Profit Correct Answer Incorrect Answer
    D Profit volume ratio = [(change in sales)/(change in profit)] × 100 Correct Answer Incorrect Answer

    Solution

    The correct answer is D

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