Assertion (A): Only the relevant costs should be taken into consideration for decision-making.
Reason (R): All variable costs are relevant costs, and all fixed costs are irrelevant costs.

Assertion (A): Only the relevant costs should be taken into consideration for decision-making.
Reason (R): All variable costs are relevant costs, and all fixed costs are irrelevant costs. Correct Answer (A) is correct, but (R) is incorrect

Bissoy MCQ

Related Questions

From the following information, find out the number of units that must be sold by the firm to earn profit of Rs. 80,000 per year.
Sales price: Rs. 25 per unit
Variable manufacturing costs: Rs. 12 per unit
Variable selling costs: Rs. 3 per unit
Fixed factory overheads: Rs. 5,00,000
Fixed selling costs: Rs. 3,00,000
"It is now expected that the variable production cost per unit and the selling price per unit will each increase by 10%, and fixed production cost will rise by 25%. What will be the new break even point?
Selling price - Rs 6 per unit
Variable production cost - Rs 1.20 per unit
Variable selling cost - Rs 0.40 per unit
Fixed production cost - Rs 4 per unit
Fixed selling cost - Rs 0.80 per unit
Budgeted production and sales for the year are 10,000 units."
Which of the following statements are the assumptions of marginal costing?
1. Per unit selling price remain unchanged at all levels of operating activity.
2. Total fixed cost remains constant for all the production units.
3. Total variable costs varies in proportion to the volume of output.
4. All the elements of cost can be divided into fixed and variable components.
"S produces and sells one product, P, for which the data are as follows:
Selling price Rs 28
Variable cost Rs 16
Fixed cost Rs 4
The fixed costs are based on a budgeted production and sales level of 25,000 units for the next period. Due to market changes both the selling price and the variable cost are expected to increase above the budgeted level in the next period. If the selling price and variable cost per unit increase by 10% and 8% respectively, by how much must sales volume change, compared with the original budgeted level, in order to achieve the original budgeted profit for the period?"
Total costs in the short-term are classified into fixed costs and variable costs. Which one of the following is a variable cost?
PRINCIPLE: A contract is an agreement enforceable by law. All agreements are contracts if they are made with free consent by parties competent to contract for a lawful consideration and with a lawful object.
FACT: A, a 40-year-old businessman of sound mind, agrees to sell his bungalow worth 40 lakhs for 1 lakh. The agreement is:
(1) Invalid due to inadequate consideration
(2) Valid as there is lawful consideration
(3) Valid as A entered into it with free consent
(4) Valid because A has capacity to contract.
If relevant incremental costs are $5000 and relevant opportunity cost of invested capital is $2500, then relevant inventory carrying costs would be
Statement I The product of coefficient of correlation, standard deviation of variable 'X' and Standard deviation of variable 'Y' gives the measure of covariance between X and Y variables.
Statement II The product of coefficient of correlation between X and Y variables and the ratio between standard deviation of X variable to standard deviation of Y variable measures the slope of the regression line of X on Y variable.
By which section of Indian Evidence Act 1872, the Judge is empowered in order to discover or to obtain proper proof of relevant facts, ask any question, in any from, at any time, of any witness, or of the parties, about any fact relevant or irrelevant?
Consider the following statements in respect of the offence of robbery:
1. Causing fear of death may be relevant
2. Causing hurt may be relevant
3. Causing fear of hurt may be relevant
4. Causing wrongful restraint may be relevant
Which of the statements given above are correct?