Read the following data given in the books of ABC Ltd and answer the question given below.
| Particulars | 2022 | 2021 |
| Revenue from operations | ₹15,00,000 | ₹12,00,000 |
| Other Income | ₹30,000 | ₹20,000 |
| Cost of Materials Consumed | ₹7,00,000 | ₹5,50,000 |
What is the change in cost of material consumed?
Answer & explanation
Correct answer: option 1
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.