The difference between standard cost and actual cost is called: MCQ with Answer and Explanation

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The difference between standard cost and actual cost is called:

A. Profit

B. Margin

C. Variance

D. Waste

Answer: Option C

Solution (By JKSSB Mock Tests)

Variance is the difference between standard (expected) cost and actual cost.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

The 'Gross Profit' is transferred to:

A. Profit and Loss Account credit

B. Balance Sheet liability

C. Trading Account debit

D. Capital Account

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Correct Answer: Option A

Explanation:
Gross profit is credited to Profit & Loss Account.

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

Question #2

The 'Monetary Unit Sampling' (MUS) is a:

A. Haphazard selection

B. Statistical sampling method that uses value-weighted selection

C. Random number sampling

D. Non-statistical method

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Correct Answer: Option B

Explanation:
MUS selects sample items based on monetary units, focusing on larger values.

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

Question #3

In a partnership firm, a partner's current account is maintained to record:

A. Drawings, interest on capital, salary, share of profit, etc.

B. Only profits

C. Only loans to partners

D. Only capital contributions

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Correct Answer: Option A

Explanation:
Fixed capital method keeps capital account for initial capital and current account for all other adjustments.

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

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