S1: In standard costing, the 'Material Mix Variance' arises when the actual mix of materials used differs from the standard mix. S2: If the actual mix is changed due to the unavailability of a specific material, the variance is calculated using the original standard mix. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: In standard costing, the 'Material Mix Variance' arises when the actual mix of materials used differs from the standard mix. S2: If the actual mix is changed due to the unavailability of a specific material, the variance is calculated using the original standard mix. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S2 only
C. S1 only
D. Both S1 and S2
Answer: Option C
Solution (By JKSSB Mock Tests)
S1 is correct. S2 is incorrect because when the actual mix is altered due to unavailability, the Material Mix Variance must be calculated using the Revised Standard Mix, not the original standard mix.
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.
No comments yet. Be the first to start the discussion!