Read the following data given in the books of ABC Ltd and answer the question given below.

What is the change in cost of material consumed?

₹1,50,000 Increase

The correct answer is option 1 i.e. ₹1,50,000 Increase.

Change in cost of material consumed = 7,00,000-5,50,000
                                                           = ₹150000

As expense is increased in the latest year(2022) from 2021 so there is an increase in expense.