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  9. Q112

APSC CCE 2023 · Question 112 of 163

The average monthly expenditure of a small manufacturing unit is shown in the following table: Raw materials Rs. 12.0 lakh, Salary Rs. 4.5 lakh, Packaging Rs. 0.75 lakh, Transport Rs. 0.5 lakh, Miscellaneous overhead expenditure Rs. 3.5 lakh. In order to maximize the profit margin, you would

Decision Making

  1. Asuggest a replacement of the currently used raw material with a low-cost variety
  2. Bsuggest a reduction of the miscellaneous overhead expenditureCorrect
  3. Csuggest a reduction in the workforce
  4. Dsuggest an across-the-board salary cut

Answer: B. suggest a reduction of the miscellaneous overhead expenditure

Explanation

Trimming the miscellaneous overhead expenditure improves the margin without hurting product quality or staffing.

Source: APSC CCE Prelims 2023 GS Paper-II, official Series-A key

← Q111View full paper (163 questions)Q113 →

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