Question

Vehicle recorded 20% below cost should be
recorded at cost. The value of vehicle `8,000.
The cost price is_----​

Answer 1

Answer:

Present cost= C

o

Rate = 20%

Time = 2 years

Let after 2 years cost, C=208000

Thus, C=C

o

(1+

100

R

)

T

208000=C

o

(1−

100

20

)

2

C

o

=325000

Thus present cost is 325000 Rs.

Answer 2

The cost price is ₹10,000.

Definition of cost price:-

The cost paid by the manufacturer in processing the product and to make it fit for the market is known as the cost incurred by the manufacturer is called as the cost price of a product.

Given:- Vehicle recorded 20% below cost.

            The value of the vehicle is ₹8,000.  

To find:- Cost price.

Solution:-

•    when any product is recorded below its original value, we need to find its original value to find its cost price.

• On the basis of cost price, we can calculate any other value correctly like profit and loss, revenue, etc.,

 Calculation:

  Value of vehicle = ₹8000

   valued 20% below cost

therefore, the cost price will be = 8000*100/80

                                                      = ₹10,000

So, the original cost price will be ₹10,000