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Answer Posted / tapas paul
MARGINAL COST MAY BE DEFINED FROM THE TWO ASPECTS:
1.ACCOUNTANT ASPECT- UNDER THIS ASPECT MARGINAL COST MEANS
VARIABLE COST ONLY.VARIABLE COST IS CONSISTENT WITH THE
ELEMENTS OF MATERIAL,LABOUR AND OVERHEAD.
2.ECONOMIC ASPECTS- ANY AMMOUNT BY WHICH AGGREGATE COST ARE
CHANGED IF THE VOLUME OF OUTPUT IS INCREASED OR DECREASED
BY ONE UNIT.
SYMBOLICALLY,
M.C=dC/dQ where dC=>change in cost,dQ=>change in quantity.
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Q5 Prepare a Balance sheet from the following particulars: Gross profit =Rs.80,000 Gross profit to cost of goods sold =1/3 Stock velocity =6 times Opening stock =Rs.36,000 Accounts receivable velocity =72 days (year=360 days) Current assets=Rs.1,50,000 Account payable velocity=90 days Bills receivable =Rs.20,000 Bills payable=Rs.5,000 Fixed assets turnover ratio (on cost of goods sod)=8 times
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