Gross margin = net income - net expenditure
Net sales realisation (NSR) = Gross sales - selling expenses
At breakeven point, NSR is more than the total production cost
Net profit = Gross margin - depreciation - interest
C. At breakeven point, NSR is more than the total production cost
n
n0.6
n0.4
√n
Market survey
Operating labour, supervision and supplies
Overhead and utilities
Depreciation, property tax and insurance
Repairs and maintenance cost
Loss due to obsolescence of the equipment
Loss due to decrease in the demand of product
Loss due to accident/breakdown in the machinery
Present worth method
Sinking fund method
Sum of the years-digits method
All (A), (B) and (C)
Assets = equities
Assets = liabilities + net worth
Total income = costs + profits
Assets = capital
Decreases
Increases
Increases linearly
Remain constant
Difference between income and expense is termed as gross revenue
Unamortised cost is the difference between the original cost of a property and all the depreciation charges made to date
Sum-of-the-years-digits methods of depreciation calculation accounts for the interest on the investment
Scrap value is the net amount of money obtainable from the sale of used property over and above any charges involved in its removal & sale
Quarterly
Semi-annually
Annually
In no case, they are equal
Plant overhead cost
Fixed charges
Direct production cost
General expenses
General expenses
Overhead cost
R & D cost
None of these
Contingencies
Onsite and offsite costs
Labour costs
Raw material costs
Manufacturing cost
Depreciation by sinking fund method
Discrete compound interest
Cash ratio
40,096
43,196
53,196
60,196
And economic life of a project are the same
Is the length of time over which the earnings on a project equals the investment
Is affected by the variation in earnings after the recovery of the investment
All (A), (B) and (C)
15
35
55
75
Cash reserve
Capital
Turnover
Investment
Competition from other manufactures
Product distribution
Opportunities
Economics
1000 (1 + 0.1/4)20
1000 (1 + 0.1)20
1000 (1 + 0.1/4)5
1000 (1 + 0.1/2)5
Fixed charges
Plant overheads
Direct products cost
Administrative expenses
Straight line method
Declining balance
Both (A) and (B)
Neither (A) nor (B)
Raw materials inventory
Utilities plants
Process equipment
Emergency facilities
More
Less
Same
No
Overhead cost
Working capital
Indirect production cost
Direct production cost
Gives a correct picture of profitability
Underemphasises liquidity
Does not measure the discounted rate of return
Takes into account the cash inflows after the recovery of investments
Inventories
Marketable securities
Chemical equipments
None of these
Property
Excise
Income
Capital gain
Straight line
Sinking fund
Present worth
Declining balance
Water supply
Running a control laboratory
Property protection
Medical services
Ageing
Wear and tear
Obsolescence
Breakdown or accident
Longer tubes are less expensive per unit heat transfer area as compared to shorter tubes
A cost index is merely a number for a given year showing the cost at that time relative to a certain base year
Turnover ratio of a chemical plant is the ratio of gross annual sales to the fixed capital investment
Plates with butt welded joints are less expensive compared to lap welded joints, because squaring of plates is not necessary