The difference between actual overhead and absorbed overhead is called: MCQ with Answer and Explanation

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The difference between actual overhead and absorbed overhead is called:

A. Budgeted cost

B. Waste

C. Standard cost

D. Under/over absorption

Answer: Option D

Solution (By JKSSB Mock Tests)

If absorbed overheads are less than actual, under-absorption; if more, over-absorption.

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

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Question #1

The 'Expected Credit Loss' model (Ind AS 109) requires recognition of impairment on:

A. Only incurred losses

B. No provision

C. 12-month expected credit losses or lifetime expected credit losses depending on credit risk

D. Only when default occurs

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Correct Answer: Option C

Explanation:
ECL model recognises either 12-month ECL (Stage 1) or lifetime ECL (Stage 2/3) based on deterioration in credit risk.

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

Question #2

The 'Form 10IE' is to be filed for:

A. Opting for new income tax regime

B. Tax audit

C. GST registration

D. TDS return

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Correct Answer: Option A

Explanation:
Form 10IE is filed by individuals/HUFs to opt for the new tax regime.

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

Question #3

Under the straight-line method of depreciation, the amount of depreciation is:

A. Constant every year

B. Increases every year

C. Variable every year

D. Decreases every year

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Correct Answer: Option A

Explanation:
Under the straight-line method, depreciation is calculated on the original cost of the asset, making the depreciation amount constant every year.

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

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