Accounting · Cost Accounting
Which of the following is NOT a correct formula for calculating the Profit-Volume (P/V) Ratio?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1P/V Ratio = Fixed CostBreak-Even Point (in Rs.) × 100
- 2P/V Ratio = Change in ProfitChange in Total Cost × 100✓
- 3P/V Ratio = ProfitMargin of Safety (MOS) × 100
- 4P/V Ratio = Sales − Variable CostSales × 100
Correct answer
P/V Ratio = Change in ProfitChange in Total Cost × 100
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