Question $1$:$-$ What would be the margin of safety ratio based on the following information? Sales price$=$ Rs$\mathrm{.}100$ per unit; Variable cost$=$ Rs$.25$ per unit and Fixed cost$=$ Rs$.50$ per unit

a$)25\%$

b$)33\mathrm{.}33\%$

c$)66\mathrm{.}66\%$

d$)75\%$

Question $2$:$-$ Which of the following step is the $3$rd step towards budgeting process?

a$)$ Forecasting

b$)$ Determination of Principle budget factor

c$)$ Decision about the removal of constraints

d$)$ Construction of budget on agreed basis

Question $3$:$-$ A company has sales of Rs$.500,000$ for the period. The selling expenses are estimated as $12\%$ of sales. The gross profit for the period is amounting to Rs$.150,000.$ Calculate the amount of selling expenses for the period?

a$)$ Rs$.60,000$

b$)$ Rs$.45,000$

c$)$ Rs$.90,000$

d$)$ Rs$.210,000$

Question $4$:$-$ Which of the following would NOT lead to an increase in net cash flow?

a$)$ Larger sales volume

b$)$ Higher selling price

c$)$ Reduced material cost

d$)$ Charging of lower depreciation

Question $5$:$-$ Viraat is running his own personal Financial services business. He has been offered a job for a salary of Rs$.45,000$ per month which he does not availed. Rs$.45,000$ will be considered as:

a$)$ Sunk Cost

b$)$ Opportunity cost

c$)$ Avoidable cost

d$)$ Historical cost