Choose one answer for each question from the given options.

Question 1: - If the total cost for producing 1000 units is Rs. 12000, and for 1100 units, it is 13,000; the nature of cost is
a) Variable cost
b) Fixed cost
c) Semi variable cost
d) The information is not sufficient

Question 2:- W Ltd. produces and sells a product Ferrum. The company has a P/V ratio of 20%. The company incurs Rs.1,20,000 as fixed cost per annum and its present sales are Rs.90,000 per month. The fixed cost is likely to increase to Rs.1,35,000 and the variable cost is expected to increase by 5% for the next period. The percentage increase in selling price required to maintain the existing level of profit is

a) 4.00%

b) 5.00%

c) 5.39%

d) 5.50%

Question 3:- V Ltd. has furnished the following cost data for 600 units (which is its 50% capacity) of its product: Variable overhead costs Rs.3,00,000 Fixed overhead costs Rs.5,00,000. The total cost for 950 units is

a) Rs. 7,00,000

b) Rs. 6,50,000

c) Rs. 9,75,000

d) Rs. 6,00,000

Question 4:- If the current assets and current liabilities are Rs.2,000 lakh and Rs.1,200 lakh respectively. How much amount can be borrowed on a short-term basis without reducing current ratio below 1.5?

a) Rs. 400 lakh

b) Rs. 600 lakh

c) Rs. 500 lakh

d) Rs. 450 lakh

Question 5:- Which of the following items would be treated as an indirect cost in manufacture of a chair?

a) Wood used to make a chair

b) Metal used for the legs of a chair

c) Fabric to cover the seat of a chair

d) Staples to fix the fabric to the seat of a chair