Ratio analysis ensures effective cost control.

Related MCQs

• The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgement and thinking, it is worse than useless.
• Ratio analysis is an important means of expressing the relationship between two numbers.
• Ratio analysis helps in investment decision.
• Liquid Ratio is also known as 2:1 ratio.
• Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000.
• The ratio which measures the relationship between the cost of goods sold and the amount of average inventory is
• As per AS 7 Research and Development cost is to be excluded from contract cost .
• Financial Statement Analysis can be used for assessment of past performance only.
• In single entry system it’s difficult to exercise control over .
• Earning per share is very important financial ratio is computed for assessing the state of --------------price of shares.