Question

20. Which of the following items shall be added to costing profit to arrive at Financial
Profit?
(A) Income Tax paid
(B) Interest received
(C) Underabsorption of Office Overhead
(D) Interest on debentures
नोटीजारोगी?
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Answer 1

Answer:

income tax

Explanation:

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Answer 2

Interest received must be added to the costing profit.

• Costing is a method of determining how changes in variable and fixed expenses influence a company's profit margin.
• It may be used by businesses to determine how many units they need to sell to break even or achieve a specific profit margin.
• In effect, it displays how much money a company has left over after deducting its stated operating costs.
• In certain cases, the total financial profit is calculated by adding the entire interest earned to the costing profit.