Exam 4: Costing and Cash Flow Analysis

The Profit/Volume ratio or marginal ratio expresses the relation of ………… to sales.

Cash, according to cash flow statement comprises of ……………

Marginal cost and differential cost are the same when ……..costs do not change with change in output

Which among the following is not an example of cash flow from operating activities ?

…………..costs are the increase or decrease in total cost that result from producing additional or fewer units or from the adoption of an alternative course of action.

Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variable cost is………….

In absorption costing, managerial decision making is based upon …………..

Marginal costing is a …………… of costing

Flow of cash is said to have taken place when any transactions makes changes in the amount of ………….before happening of the transactions.

Which among the following are examples of cash flow from operating activities ?

Given sales = 100000, Profit = 10000 , variable cost = 70%.The sales required to earn a profit of Rs.40000 is ………………………

………………..cost remains constant per unit of output irrespective of the level of output and thus fluctuates directly in proportion to changes in the volume of output

………. Is the increase or decrease in total cost which results from producing or selling additional or fewer units of a product or from a change in the method of production or distribution such as the use of improved machinery, addition or exclusion of a product or territory or selection of an additional sales channel.

Under marginal costing, …………… costs are treated as period costs and charged to profit and loss account for the period for which they are incurred

Marginal cost is the ……….cost of producing an additional unit of output

………………..is the excess of sales over marginal cost of sales

………….cost represents the amount of any given volume of output by which aggregate costs are changed if the volume of output is increased by one unit.

Under marginal costing, stocks of finished goods and work-in-process are valued at …………….. costs only

…………cost is defined as the aggregate of variable costs or prime costs plus variable overheads.

………are short term , highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.