A 'Cost Centre' is: MCQ with Answer and Explanation

Question
A 'Cost Centre' is:
A. A location, person, or item of equipment for which costs are accumulated
B. A unit of product
C. A sales territory
D. A method of pricing
Answer: Option A
Solution (By JKSSB Mock Tests)
Cost centre is a segment of the organization where costs are collected, e.g., department, machine.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
A 'Ledger Account' is balanced at the end of the accounting period to find:
A. Gross profit
B. Total purchases
C. Net balance (debit or credit)
D. Net profit
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Correct Answer: Option C

Explanation:
Balancing an account means finding the difference between debit and credit totals.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
PFMS portal is used for:
A. Tax filing
B. e-procurement
C. Company registration
D. Direct Benefit Transfer (DBT)
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Correct Answer: Option D

Explanation:
PFMS facilitates direct benefit transfers and real-time tracking of government funds.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A trader sells goods costing ₹20,000 for ₹25,000. The gross profit margin is:
A. 25%
B. 20%
C. 20% on sales? Actually profit 5,000 on sales 25,000 = 20%.
D. None
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Correct Answer: Option B

Explanation:
Gross profit = 5,000. Gross profit ratio on sales = (5,000/25,000)*100 = 20%.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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