A product sells at Rs 800 and must earn Rs 180. Present cost is Rs 700. Cost reduction needed?
ARs 100
BRs 180
CRs 80
DRs 620
Answer & Solution
Correct answer: C. Rs 80
Target cost is 800 minus 180, which is 620, so cost must fall by 700 minus 620, or 80.
Keep practising Cost Accounting
Browse all Cost Accounting questions for CA Final, or explore more Cost and Management Accounting topics.
Related questions
US regulations test an arm's length range using which measure?Which is a recognised transfer pricing method?Resale price is Rs 1,200 and the distributor's gross margin is 20% of resale price. TransfCost of a transferred item is Rs 800 and the cost-plus markup is 25% on cost. Transfer priThe balanced scorecard was originally designed mainly forThe Analog Devices scorecard was created by Art Schneiderman inCustomer retention rate fits which scorecard perspective?Hours of staff training per year fit which scorecard perspective?