In cost accounting, fixed cost per unit: MCQ with Answer and Explanation

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In cost accounting, fixed cost per unit:

A. Increases with increase in production

B. Decreases with increase in production

C. Remains constant

D. Fluctuates arbitrarily

Answer: Option B

Solution (By JKSSB Mock Tests)

Total fixed cost remains constant within a relevant range, so per unit fixed cost decreases as production volume increases.

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

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Question #1

A bank reconciliation statement is prepared to reconcile the difference between:

A. Pass book and purchase book

B. Cash book and sales book

C. Cash book (bank column) and pass book

D. Cash book and petty cash book

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Correct Answer: Option C

Explanation:
BRS reconciles the bank balance as per cash book (bank column) with the balance as per bank statement (pass book).

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

Question #2

The 'e-Way Bill' validity for distance up to 100 km is:

A. 5 days

B. 3 days

C. 2 days

D. 1 day

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Correct Answer: Option D

Explanation:
For up to 100 km, e-way bill is valid for 1 day.

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

Question #3

Which of the following is a current liability?

A. Goodwill

B. Sundry Creditors

C. Debentures

D. Mortgage Loan

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Correct Answer: Option B

Explanation:
Sundry Creditors are amounts owed to suppliers for goods purchased on credit, which are typically due within one year, making them a current liability.

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

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