The 'Activity Based Costing' (ABC) method focuses on: MCQ with Answer and Explanation

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The 'Activity Based Costing' (ABC) method focuses on:

A. Identifying activities and assigning costs based on usage of those activities

B. Allocating overheads based on labour hours

C. Budgeting

D. Only direct costs

Answer: Option A

Solution (By JKSSB Mock Tests)

ABC assigns overheads more accurately by tracing them to activities.

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

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Question #1

The 'Comptroller and Auditor General' (CAG) is appointed by:

A. Prime Minister

B. President of India

C. Finance Minister

D. Parliament

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Correct Answer: Option B

Explanation:
CAG is appointed by the President under Article 148.

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

Question #2

The accounting standard dealing with Property, Plant and Equipment (PPE) is:

A. AS 10

B. AS 2

C. AS 26

D. AS 9

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Correct Answer: Option A

Explanation:
AS 10 regulates the accounting for Property, Plant, and Equipment, covering recognition, measurement, and depreciation.

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Question #3

When starting a BRS with a debit balance as per the Cash Book, cheques issued but not yet presented for payment should be:

A. Added

B. Ignored

C. Divided

D. Deducted

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Correct Answer: Option A

Explanation:
These cheques decreased the cash book balance but not the pass book. To match the pass book, they must be added back.

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

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