List  I (Critical Control Standards) List II (Critical Points) (a)Physical standards (i)Material cost per unit (b) Cost standards (ii) Labour hours per unit of output (c) Revenue standards (iii) Timing of production (d) Program standards (iv) Average sales per customer Codes:

Statement (I): Accounting profit is a surplus of total revenue over and above all paid-out costs, including both manufacturing and overhead expenses. Statement (II): Economic or pure profit is a residual left after all contractual costs have been met, including the transfer costs of management, insurable risks, depreciation and payments to shareholders sufficient to maintain […]

Assertion (A): A high operating ratio indicates a favourable position Reasoning (R): A high operating ratio leaves a high margin to meet non operating expenses