The 'Contract Costs' under Ind AS 115 include: MCQ with Answer and Explanation

Question
The 'Contract Costs' under Ind AS 115 include:
A. All costs
B. Only direct labour
C. Only material
D. Incremental costs of obtaining a contract and costs to fulfil a contract that are not covered by other standards
Answer: Option D
Solution (By JKSSB Mock Tests)
Incremental costs (like sales commissions) are capitalised if expected to be recovered.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
Which of the following is an extraordinary item?
A. Purchase of raw material
B. Salary paid
C. Sale of goods
D. Loss due to fire in a factory (not regular)
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Extraordinary items are unusual and infrequent, e.g., loss from natural disaster, expropriation.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
In Social Accounting, treating pollution emitted by a factory as a negative entry is an example of pricing an:
A. Internal Cost
B. External Cost (Negative Externality)
C. Sunk Cost
D. Opportunity Cost
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option B

Explanation:
Pollution is an external cost because the burden is borne by society, not directly reflected in the company's internal financial books.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
A 'Sleeping Partner' is one who:
A. Guarantees profits
B. Has unlimited liability only
C. Invests capital but does not take part in day-to-day management
D. Manages the firm
Discuss
Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Sleeping or dormant partner contributes capital but does not participate in management.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Explore All Accountancy and Book Keeping MCQs
Today's Top Topics
Accountancy and Book Keeping 1861 Statistics 1318
Explore Subjects
Accountancy and Statistics 3179 Economy GK 2220 English 15164 Computer 5279 Current Affairs 575
Practice Mix
Which of the following is an indirect tax in India?
The valve between the left atrium and left ventricle is the:
A person faces north. He turns 45° left, then 90° right, then 45° left. Which direction is he facing?
Under the Income Tax Act, the 'TDS' on the sale of an immovable property (other than agricultural land) by a resident is governed by which section, and what is the rate?
In 'Piecemeal Distribution' during dissolution, the first priority for payment of outside liabilities is: