Opportunity Cost can be best described as: MCQ with Answer and Explanation

Question
Opportunity Cost can be best described as:
A. A cost that cannot be changed
B. The direct cost of making a product
C. The benefit sacrificed when choosing one alternative over the next best alternative
D. The cost of idle time
Answer: Option C
Solution (By JKSSB Mock Tests)
Opportunity cost is a crucial economic and management concept reflecting the value of the foregone alternative in decision making.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
In standard costing, if the actual material mix is changed due to a shortage of a specific material, how should the Material Mix Variance be calculated?
A. Using the original standard mix
B. It cannot be calculated
C. Using the revised standard mix
D. Using the actual mix
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Correct Answer: Option C

Explanation:
When there is a shortage of a material and the actual mix is altered, the Material Mix Variance must be calculated using the Revised Standard Mix, not the original standard mix.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Sabka Vishwas' scheme was related to:
A. GST only
B. Indirect tax legacy disputes
C. Income tax
D. Customs only
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Correct Answer: Option B

Explanation:
Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 covered service tax and excise disputes.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Expected Credit Loss' model is used in:
A. AS 9
B. AS 10
C. AS 2
D. Ind AS 109
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Correct Answer: Option D

Explanation:
Ind AS 109 introduces expected credit loss for impairment of financial assets.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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