# Management Accounting Test Questions

**Q. A company is producing product T on a machine. The selling price of T is Rs 100, marginal cost is Rs 60 and machine takes 20 hours to produce T. The company uses a component H which can be made on same machine in 3 hours for a marginal cost of Rs 5. Component can also be bought from the market for Rs 10. What will be the final result if the company decides to by component H from market? (Machine is fully utilized)**
**a.** Savings of Rs 1

**b.** Loss of Rs 5

**c.** Loss of Rs 1

**d.** Savings of Rs 5

No explanation is available for this question!