Accounting · Marginal Costing
'TechNova', a software training company, has determined that its Break-Even Point (BEP) for the current financial year is 1,500 training hours. The company is forecasting to sell 2,000 training hours at a price of 5,000 per hour. Which of the following describes the specific profitability measure that assesses the buffer the company has before incurring losses, and what is its calculated value?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1Profitability Measure: P/V Ratio. Calculated Value: 500 units, 33.33 percent.
- 2Profitability Measure: Contribution Margin. Calculated Value: 2,500,000, 50 percent.
- 3Profitability Measure: Margin of Safety (MOS). Calculated Value: 500 hours, 25 percent.✓
- 4Profitability Measure: Break-Even Point (BEP). Calculated Value: 500 units, 25 percent.
Correct answer
Profitability Measure: Margin of Safety (MOS). Calculated Value: 500 hours, 25 percent.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Start Free Mock Test →Preparing for Accounting?
Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice Marginal Costing MCQs →Want more practice questions on Marginal Costing?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Accounting · Marginal Costing