Comprehension
The graph given below gives the yearly details of money invested in producing a certain product over the years 1991 to 1995. It also gives the profit (in ‘000 rupees)
Question: 1
In which year was the increase in raw material maximum?
In which year was the increase in raw material maximum?
Show Hint
Look for the tallest difference between consecutive years' segments for the same category.
Updated On: Aug 6, 2025
- 1992
- 1993
- 1994
- 1995
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The Correct Option is C
Solution and Explanation
From the bar chart:
- Raw material height increases from 1993 to 1994 is visually the largest jump compared to other years.
- Increases in earlier years are smaller in magnitude.
Hence, maximum increase occurs in 1994.
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Question: 2
In which period was the change in profit maximum?
In which period was the change in profit maximum?
Show Hint
Focus on the top bar segment (profit) and visually compare consecutive years for maximum difference.
Updated On: Aug 6, 2025
- 1991-92
- 1992-93
- 1993-94
- 1994-95
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The Correct Option is C
Solution and Explanation
Profit = top shaded segment. The largest jump in size occurs from 1993 to 1994, indicating maximum change in profit.
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Question: 3
Which component of the cost production has remained more or less constant over the period?
Which component of the cost production has remained more or less constant over the period?
Show Hint
Constant values appear as nearly equal segment heights year-to-year in a stacked bar chart.
Updated On: Aug 6, 2025
- Interest
- Overheads
- Wages
- Raw material
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The Correct Option is A
Solution and Explanation
Interest segment (diagonal shading) shows almost the same size in every year from 1991–1995, indicating constancy.
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Question: 4
In which year were the overheads, as a percentage of the raw material, maximum?
In which year were the overheads, as a percentage of the raw material, maximum?
Show Hint
To find a maximum ratio, look for years with relatively high numerator segment and low denominator segment.
Updated On: Aug 6, 2025
- 1995
- 1994
- 1992
- 1993
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The Correct Option is C
Solution and Explanation
Overheads = black segment. Raw material = bottom unshaded segment.
In 1992, overhead bar is tall compared to raw material bar height, giving the maximum ratio.
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Question: 5
What percentage of the costs did the profits form over the period?
What percentage of the costs did the profits form over the period?
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In stacked bar charts, profit percentage = (profit height ÷ total height without profit) × 100.
Updated On: Aug 6, 2025
- 3%
- 5%
- 8%
- 11%
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The Correct Option is B
Solution and Explanation
Total profit over 5 years ≈ sum of top segments.
Total costs = sum of all other segments (raw material + wages + overheads + interest).
Ratio ≈ \(\frac{\text{Total Profit}}{\text{Total Costs}} \times 100\) ≈ 5%.
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Question: 6
If the interest component is not included in the total cost calculation, which year would show the maximum profit per unit cost?
If the interest component is not included in the total cost calculation, which year would show the maximum profit per unit cost?
Show Hint
When excluding a cost component, subtract its segment height before calculating ratios.
Updated On: Aug 6, 2025
- 1991
- 1992
- 1993
- 1995
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The Correct Option is D
Solution and Explanation
Profit per unit cost (excluding interest) = \(\frac{\text{Profit}}{\text{Raw material + Wages + Overheads}}\)
1995 has a high profit segment and relatively low sum of the other three components (excluding interest), yielding the highest ratio.
1995 has a high profit segment and relatively low sum of the other three components (excluding interest), yielding the highest ratio.
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