Costing

269. Which of the following are possible causes of material price variance? 1. Change in market price. 2. Use of poor quality of material. 3. Inefficient buying. 4. Untimely buying. 5. Paying overtime for urgent work. 6. Use of substitute material of different prices. Select the correct answer

1, 3, 4 and 6
2, 3, 5 and 6
3, 4, 5 and 6
1, 3, 5 and 6

Detailed SolutionWhich of the following are possible causes of material price variance? 1. Change in market price. 2. Use of poor quality of material. 3. Inefficient buying. 4. Untimely buying. 5. Paying overtime for urgent work. 6. Use of substitute material of different prices. Select the correct answer

270. Why is profit volume ratio used? 1. To compute the variable cost for any volume of sales. 2. To determine break-even point and the level of output required to earn a desired profit. 3. To decide most profitable sales mix. Select the correct answer

Both 1 and 2
Both 2 and 3
Both 1 and 3
All of these

Detailed SolutionWhy is profit volume ratio used? 1. To compute the variable cost for any volume of sales. 2. To determine break-even point and the level of output required to earn a desired profit. 3. To decide most profitable sales mix. Select the correct answer

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