IBPS PO General Awareness: Cost Accounting questions with solutions

Q1. In a cycle manufacturing business, which method of costing is most appropriate?

1. Job Costing
2. Process Costing
3. Batch Costing
4. Multiple Costing

Answer: Multiple Costing

Cycle manufacturing involves assembling multiple parts and components, so a single costing method like job or process costing is not sufficient. Multiple costing is appropriate because it combines different costing techniques for different parts of the product.

Q2. Given a P/V ratio of 30%, fixed cost of ₹90,000, and a selling price of ₹100 per unit, find the break-even point (BEP) in units.

1. 2500 units
2. 3000 units
3. 3500 units
4. 4000 units

Answer: 3000 units

P/V ratio = Contribution/Sales = 30%, so contribution per unit = 30% of ₹100 = ₹30. Break-even point = Fixed cost / Contribution per unit = 90,000 / 30 = 3,000 units.

Q3. If the desired profit is ₹20,000, fixed costs are ₹150,000, and the P/V ratio is 50%, what will be the required sales?

1. ₹3,00,000
2. ₹3,20,000
3. ₹3,400,000
4. ₹3,600,000

Answer: ₹3,400,000

Required sales are calculated by dividing the sum of fixed costs and desired profit by the P/V ratio. Here, $(150000 + 20000)/0.5 = 340000$, so the intended answer is ₹3,40,000; the option text appears OCR-corrupted as ₹3,400,000.