If cost is ₹9000 and profit is 10% of sales, what is the selling price ?

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Q. If cost is ₹9000 and profit is 10% of sales, what is the selling price ?

ChseodishaCHSE Odisha Plus Two (Class 12) Commerce Board 2022Subjective· 3mImportance★★★★★est

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Profit is 10% of sales, so cost = 90% of sales → sales = 9,000 ÷ 0.90 = ₹10,000.

This CHSE Odisha +2 Cost Accounting problem gives profit as a percentage of sales (not of cost), so care is needed.

Let Sales = S.

Profit = 10% of S = 0.10 S
Cost = Sales − Profit = S − 0.10 S = 0.90 S

Given Cost = ₹9,000:

Step	Working	Value
Cost as a fraction of sales	100% − 10%	90% of S
Sales	9,000 ÷ 0.90	₹10,000
Profit	10% × 10,000	₹1,000

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2024Set ANNUAL1 mark
$Q. Rectify the underlined portions of the following sentences :$
(vii) Prime cost plus factory overhead is total cost. (underlined : total)
›Reveal solutionSolution
Correct word: Prime cost + factory overhead = WORKS cost (not total cost).

The cost sheet build-up is:

Prime cost + Factory/Works overhead = Works (Factory) cost

Works cost + Office & Administration overhead = Cost of production

Cost of production + Selling & Distribution overhead = Total cost (cost of sales) …
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CBSE 2022Set ANNUAL1 markMCQ
$Q. Cost of production is equal to :$
(a) Prime cost plus factory overheads
(b) Factory cost plus administration overheads
(c) Direct material plus direct expenses
(d) Total cost plus profit
›Reveal solutionSolution

Cost of production = Works (factory) cost + Office/Administration overheads — option (b).

The cost-sheet ladder in +2 Class-12 Cost Accounting (CHSE Odisha, NCERT/CBSE-aligned) is:

Stage Build-up
Prime cost Direct material + Direct wages + Direct expenses
Works / Factory cost Prime cost + Factory (works) overheads
Cost of production Works cost + Office/Administration overheads

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CBSE 2022Set ANNUAL1 markMCQ
$Q. Aggregate of direct material, direct wages and direct expenses is known as :$
(a) Factory cost
(b) Cost of production
(c) Total cost
(d) Prime cost
›Reveal solutionSolution

Direct material + Direct wages + Direct expenses = Prime cost — option (d).

In +2 Class-12 Cost Accounting (CHSE Odisha), prime cost is the aggregate of all direct costs:

Element
Direct material xxx
Direct wages xxx
Direct expenses xxx

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CBSE 2022Set ANNUAL1 markMCQ
$Q. Cost of sale is the sum total of :$
(a) Cost of production plus selling and distribution overheads
(b) Prime cost plus factory overheads
(c) Cost of production plus selling and distribution overheads plus % of profit
(d) Total cost minus profit
›Reveal solutionSolution

Cost of sales = Cost of production + Selling & Distribution overheads — option (a).

In the cost-sheet build-up (CHSE Odisha +2 Cost Accounting):

Stage Build-up
Cost of production Works cost + Office/Administration overheads
Cost of sales (total cost) Cost of production + Selling & Distribution overheads
Sales Cost of sales + Profit
…

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CBSE 2019Set ANNUAL1 mark
$Q. Correct the underlined portion of the following sentence: Cost of production + selling and distribution overhead = Factory cost. (underlined portion: "Factory cost")$
›Reveal solutionSolution

The underlined "Factory cost" is wrong — adding selling and distribution overhead to cost of production gives Total Cost (Cost of Sales), the last line of the cost sheet.

The cost sheet builds up in a fixed sequence (a core idea in the CHSE Odisha +2 Class-12 Cost Accounting syllabus):

Stage Build-up
Prime cost Direct material + Direct labour + Direct expenses
Factory / Works cost Prime cost + Factory (works) overhead
Cost of production Factory cost + Office & administration overhead

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Stage	Build-up
Prime cost	Direct material + Direct wages + Direct expenses
Works / Factory cost	Prime cost + Factory (works) overheads
Cost of production	Works cost + Office/Administration overheads

Element
Direct material	xxx
Direct wages	xxx
Direct expenses	xxx

Stage	Build-up
Cost of production	Works cost + Office/Administration overheads
Cost of sales (total cost)	Cost of production + Selling & Distribution overheads
Sales	Cost of sales + Profit
…

Stage	Build-up
Prime cost	Direct material + Direct labour + Direct expenses
Factory / Works cost	Prime cost + Factory (works) overhead
Cost of production	Factory cost + Office & administration overhead

←Previous questionQ38 — Name the different types of cost centres.→Next questionQ40 — Give any three limitations of Cost Accounting.

Q.If cost is ₹9000 and profit is 10% of sales, what is the selling price ?

Concept understanding — Cost Sheet

Q.If cost is ₹9000 and profit is 10% of sales, what is the selling price ?

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