alleryStart learning →In the short run, a unit is worth making if revenue exceeds which cost?
AFixed cost
BTotal cost
CSunk cost
DVariable cost
Answer & Solution
Correct answer: D. Variable cost
Fixed costs are incurred anyway, so extra revenue above the variable cost adds to the contribution.
Keep practising Cost Sheet
Browse all Cost Sheet questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
Opening stock Rs 40,000, purchases Rs 3,00,000, closing stock Rs 60,000. Cost of goods solStock: 100 units at Rs 10 then 100 at Rs 12. FIFO cost of 150 units sold?List price Rs 50,000, trade discount 10%, freight Rs 1,500. Cost of purchase?A person quits an Rs 8 lakh job for a business earning Rs 5 lakh. Opportunity cost?A machine bought for Rs 5 lakh last year cannot be resold. How is that outlay classed?Making 100 units costs Rs 5,000 and 101 units cost Rs 5,060. Marginal cost of the 101st?A bill has a Rs 500 standing charge plus Rs 4 per unit. Cost for 300 units?Variable cost is Rs 15 a unit; total cost of 2,000 units is Rs 50,000. Fixed cost?