The marginal cost curve is ______
U-shaped
The Marginal Cost (MC) curve is typically U-shaped due to the law of variable proportions. Initially, MC decreases due to increasing returns to the variable factor and later increases due to diminishing returns. Therefore, the correct answer is U-shaped.
Important Questions from Cost and Management Accounting
A company raises Rs. 1,00,000 by issue of 1000, 10% debentures of Rs. 100 each at a discount of 2% redeemable after 10 years. If the corporate tax rate is 40%, what would be the cost of capital?
1. 6.82%
2. 5.98%
3. 6.18%
4. 5.5%
Which of the following statements are true?
a) Pay - back period method considers all cash flows of a project
b) Pay - back period method concerns more with the recovery of cost than profitability
c) Net Present Value represents net addition to the wealth of shareholders
d) Accounting Rate of Return method incorporates risk as well as time value of money
Choose the correct option from those below.
Match List I with List II
List I
(Type of Costing)
List II
(Description)
A. Marginal Costing I. Integrated approach to determine product features, product price, product costs and product design that helps ensure a company to earn reasonable profit on new products. B. ABC Costing II. The amount of any given volume of output by which the aggregate costs are changed if the volume of output is increased by one unit. C. Target Costing III. Used when identical units are produced through an on-going series of production steps. D. Process Costing IV. Costing system in which costs being with tracing of activities and then to producing the product. Choose the correct answer from the options given below:
Which one of the following is PV ratio for the company?
Which one of the following is the break-even point in units for the company?
