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

Question

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A 'Cost Centre' is:

A. A method of pricing

B. A location, person, or item of equipment for which costs are accumulated

C. A unit of product

D. A sales territory

Answer: Option B

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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Question #1

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The Indian Financial Management System for government accounting follows which method?

A. Cash basis

B. Mercantile basis

C. Hybrid basis

D. Accrual basis only

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Correct Answer: Option A

Explanation:
Government accounting in India is primarily on cash basis, though there are moves towards accrual basis.

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Question #2

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Which of the following statements best describes the 'Money Measurement Concept'?

A. Only profitable transactions are recorded.

B. Only cash transactions are recorded.

C. All transactions and events are recorded in terms of money.

D. All assets are recorded at market value.

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Correct Answer: Option C

Explanation:
The money measurement concept states that only those transactions which can be expressed in monetary terms are recorded in the books of accounts.

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Question #3

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Input Tax Credit under GST is available for:

A. Exempted supplies only

B. All goods and services

C. Goods and services used for business purposes

D. Personal consumption goods

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Correct Answer: Option C

Explanation:
Input tax credit can be availed only on inputs used for business purposes, subject to conditions under GST law.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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