A favourable variance in materials cost indicates that: MCQ with Answer and Explanation

Question
A favourable variance in materials cost indicates that:
A. Actual cost of materials was less than the standard cost
B. Sales volume increased
C. Material price increased in the market
D. More material was used than budgeted
Answer: Option A
Solution (By JKSSB Mock Tests)
Favourable means beneficial to profit, which happens when actual costs are lower than standard expected costs.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The 'Anti-Profiteering Authority' under GST ensures:
A. Tax evasion is prevented
B. Suppliers charge high prices
C. Companies do not make profit
D. Benefits of tax rate reduction are passed to consumers
Discuss
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Correct Answer: Option D

Explanation:
It ensures that reduction in tax rates or benefit of ITC is passed on as commensurate price reduction.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Under GST, the 'Composition Scheme' is available to small taxpayers with aggregate turnover up to:
A. ₹1.5 crore
B. ₹20 lakh
C. ₹10 crore
D. ₹50 lakh
Discuss
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Correct Answer: Option A

Explanation:
For goods, composition scheme limit is ₹1.5 crore (₹75 lakh for some states). For services, separate limit. The general limit for goods is ₹1.5 crore.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Exchequer Control' in government accounting means:
A. Free spending
B. No control over expenditure
C. Only tax collection
D. Withdrawal of funds only as per parliamentary grants
Discuss
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Correct Answer: Option D

Explanation:
Exchequer control ensures government spending is in accordance with approved grants.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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