In cost accounting, 'Variable Cost' per unit: MCQ with Answer and Explanation

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In cost accounting, 'Variable Cost' per unit:

A. Remains constant

B. Decreases with production

C. Fluctuates randomly

D. Increases with production

Answer: Option A

Solution (By JKSSB Mock Tests)

Variable cost per unit remains constant; total variable cost changes with output.

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

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Question #1

When a fixed asset is sold, any profit on sale is credited to:

A. Balance Sheet

B. Profit & Loss Account

C. Capital Account

D. Trading Account

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Correct Answer: Option B

Explanation:
Profit on sale of fixed asset is a revenue gain, shown in Profit & Loss Account.

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

Question #2

The 'Excess Grant' is:

A. Token grant

B. Expenditure in excess of voted grant

C. Grant not utilized

D. Supplementary grant

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Correct Answer: Option B

Explanation:
Excess grant is the amount spent over the original grant, requiring regularization by Parliament.

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

Question #3

In financial management, 'Float' refers to:

A. The time difference between writing a cheque and its actual clearance from the bank

B. The amount of petty cash

C. Sinking fund investments

D. Issuing new shares

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Correct Answer: Option A

Explanation:
Float is the delay in the clearing system, creating a temporary discrepancy between the firm's cash balance and the bank's ledger balance.

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

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