In Social Cost Benefit Analysis (SCBA), 'Shadow Pricing' is used to: MCQ with Answer and Explanation

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In Social Cost Benefit Analysis (SCBA), 'Shadow Pricing' is used to:

A. Calculate depreciation of intangibles

B. Price products below cost to gain market share

C. Hide illicit profits

D. Assign a true economic value to goods when market prices are distorted or non-existent

Answer: Option D

Solution (By JKSSB Mock Tests)

Shadow prices reflect the true opportunity cost of resources to society, used when market prices fail to reflect this true cost.

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

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Question #1

The 'Life Cycle Costing' considers costs:

A. Only fixed costs

B. Only variable costs

C. Only during manufacturing

D. From product design to disposal

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Correct Answer: Option D

Explanation:
Life cycle costing tracks costs from research and development to after-sales service and disposal.

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

Question #2

The 'Convergence' of accounting standards means:

A. Modifying local standards to align with IFRS

B. No change

C. Keeping different standards

D. Adopting IFRS as they are

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Correct Answer: Option A

Explanation:
Convergence involves making domestic standards consistent with IFRS, with modifications if necessary.

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

Question #3

The 'Remission of Duties and Taxes on Exported Products' (RoDTEP) scheme replaced:

A. Merchandise Exports from India Scheme (MEIS)

B. EPCG

C. SEZ scheme

D. Advance Authorisation

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Correct Answer: Option A

Explanation:
RoDTEP replaced MEIS to ensure WTO compliance, refunding embedded taxes not refunded through GST.

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

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