List I List II (a) The presence of fixed cost in the cost structure of the firm (1)Super-leverage (b) The presence of fixed return funds in the capital structure of the firm (2)Operational leverage (c) Impact of changes in sales on the earnings available to shareholders (3)Financial leverage
(i) Dividend payout, and /or (ii) Stability of dividend
This indicates – (1) net working capital and/or (2) gross working
Marginal costing and Absorption costing are the same. For decision making, absorption costing is more suitable than marginal costing Cost-volume-profit relationships also denote break-even point. Marginal costing is based on the distinction between fixed and variable costs. Which of the following combinations gives true statements with regard to above? Codes: