State with reasons whether the following propositions are correct. (a). In an undertaking with a high fixed

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State with reasons whether the following propositions are correct.

(a). In an undertaking with a high fixed cost, break-even point can be attained at a lower level of activity. 

(b). Profit is represented by the product of the margin of safety and the P/V ratio.

(c). In relation to normal sales, a low margin of safety along with a high P/V ratio is generally an indication of high fixed costs.

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Cost Accounting

ISBN: 9780070221628

4th Edition

Authors: Jawahar Lal, Seema Srivastava

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