Eps Class 12 Chapter 13 Objective

12th Entrepreneurship Chapter 13 Objective : Here you can find class 12th eps Objective questions for board exam 2022. Break-Even Analysis objective questions is very important for board exam 2022. eps class 12 chapter 13 objective question answer.

Break-Even Analysis

  1. Profit volume ratio shows the relation between whom ?

(a) Contribution and profit

(b) Contribution and loss

(c) Contribution and sales

(d) None of the above

Ans (c) Contribution and sales

  1. What break-even point shows ?

(a) Profit

(b) Loss

(c) Neither profit nor loss

(d) None of the above

Ans (c) Neither profit nor loss

  1. The difference between actual sales and break-even sale is known as?

(a) Margin of safety

(b) Total Cost

(c) Break-even point

(d) None of these

Ans (a) Margin of safety

  1. Margin of Safety is:

(a) Sales – Contribution

(b) Actual Sales – BEP Sales

(c) B.E.P. Sales- Actual Sales

(d) None of these  

Ans (b) Actual Sales – BEP Sales

  1. Contribution:

(a) Sales Less Total Cost

(b) Sales Less Variable Cost

(c) Sales Less Fixed Cost

(d) None of these

Ans (b) Sales Less Variable Cost

  1. Which of the following is not a limitation of Break- even analysis ?

(a) Technical stability

(b) Cost segregation

(c) Applicability of Multi-product Firm

(d) Change in selling price

Ans (a) Technical stability

  1. Which of the following is a method of computation of Break-even analysis ?

(a) Mathematical Method

(b) Graphical Method

(c) Both (a) and (b) above

(d) Neither (a) nor (b) above

Ans (c) Both (a) and (b) above

  1. Which of the following is a utility of Break-even analysis ?

(a) Risk valuation

(b) Understanding Accounting Data

(c) Profit improvement

(d) All of the above

Ans (d) All of the above

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