The 'Activity Based Costing' (ABC) is more suitable for: MCQ with Answer and Explanation

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The 'Activity Based Costing' (ABC) is more suitable for:

A. Labour-intensive industries

B. Only small businesses

C. Only service industries

D. Organisations with high product diversity and complex overhead structures

Answer: Option D

Solution (By JKSSB Mock Tests)

ABC works best where overheads are high and diverse, and products consume resources differently.

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

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Question #1

Which government initiative relies on PFMS to ensure that farmers receive minimum income support seamlessly?

A. Smart Cities Mission

B. PM KISAN

C. Skill India

D. Make in India

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Correct Answer: Option B

Explanation:
PM KISAN uses the Direct Benefit Transfer (DBT) mechanism of the PFMS to transfer funds directly into the bank accounts of farmers.

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

Question #2

Which of the following is an example of a real account?

A. Creditor Account

B. Sales Account

C. Machinery Account

D. Salary Account

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Correct Answer: Option C

Explanation:
Machinery Account represents a tangible asset, which is a real account. The rule is 'Debit what comes in, credit what goes out'.

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

Question #3

Which of the following deductions is not allowed under the new income tax regime (default)?

A. Section 24(b) interest on housing loan (let-out property)

B. Standard deduction on salary

C. Section 80C (PPF, LIC, etc.)

D. Section 80CCD(2) (employer contribution to NPS)

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Correct Answer: Option C

Explanation:
Under the new regime, Section 80C deductions are not allowed.

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

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