S1: In Activity-Based Costing (ABC), a cost driver is a factor that causes a change in the cost of an activity. S2: Transaction drivers are generally more accurate than duration drivers in ABC. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: In Activity-Based Costing (ABC), a cost driver is a factor that causes a change in the cost of an activity. S2: Transaction drivers are generally more accurate than duration drivers in ABC. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S1 only
C. S2 only
D. Both S1 and S2
Answer: Option B
Solution (By JKSSB Mock Tests)
S1 is the correct definition of a cost driver. S2 is incorrect because duration drivers (which measure the time taken) are generally more accurate than transaction drivers (which merely count the number of times an activity occurs), though transaction drivers are cheaper to implement.
S1: Under GST, the 'Time of Supply' for goods supplied on an approval basis is 6 months from the date of removal. S2: If the goods are not rejected within 6 months, the time of supply is the date of removal. Which statement(s) is/are correct?
Explanation:
Section 12(6) of the CGST Act states that for supply on approval, the time of supply is 6 months from the date of removal, or the date of invoice if earlier. If not rejected within 6 months, it is the date of removal. Both are correct.
A company issued 10,000 shares of ₹10 each at par, payable ₹2 on application, ₹3 on allotment, ₹5 on call. A shareholder holding 500 shares failed to pay call money. Calls-in-arrears amount is:
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