A: Standard costing is a system of cost control. R: It involves comparing standard costs with actual costs to find variances. Choose the correct option. MCQ with Answer and Explanation

A: Standard costing is a system of cost control. R: It involves comparing standard costs with actual costs to find variances. Choose the correct option.
A. Both A and R are true and R is the correct explanation of A
B. Both A and R are true but R is NOT the correct explanation of A
C. A is true but R is false
D. A is false but R is true
Answer: Option A
Solution (By JKSSB Mock Tests)
Standard costing controls costs by setting predetermined standards and analyzing deviations (variances) from these standards. R correctly describes the core mechanism of standard costing.

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Practice More Accountancy and Book Keeping Questions

Question #1
The main difference between cash basis and accrual basis is:
A. Timing of recognition of revenues and expenses
B. Recording of transactions
C. Trial balance preparation
D. Use of vouchers

Correct Answer: Option A


Explanation:
Cash basis recognises on cash flow; accrual on earning/incurring.

Question #2
If opening stock is ₹20,000, purchases are ₹80,000, and closing stock is ₹15,000, what is the cost of goods sold?
A. ₹95,000
B. ₹85,000
C. ₹1,15,000
D. ₹1,00,000

Correct Answer: Option B


Explanation:
COGS = Opening Stock + Purchases - Closing Stock = 20,000 + 80,000 - 15,000 = ₹85,000.

Question #3
A credit purchase of machinery worth ₹50,000 will:
A. Increase assets and increase liabilities
B. Decrease assets and increase liabilities
C. Increase assets and decrease liabilities
D. Decrease assets and decrease capital

Correct Answer: Option A


Explanation:
Machinery (asset) increases, and a creditor liability increases. So assets and liabilities both increase.