The 'Target Costing' approach begins with: MCQ with Answer and Explanation

Question
The 'Target Costing' approach begins with:
A. Determining cost of production
B. Budgeting
C. Setting a desired selling price and then deducting desired profit margin to arrive at target cost
D. Calculating actual cost
Answer: Option C
Solution (By JKSSB Mock Tests)
Target costing is a market-driven approach: Target cost = Target selling price - Desired profit.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
In the context of the Indian Financial System, the 'Forward Markets Commission' (FMC) was the regulator for which market before its merger with SEBI?
A. Money Market
B. Foreign Exchange Market
C. Government Securities Market
D. Commodity Derivatives Market
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Correct Answer: Option D

Explanation:
The Forward Markets Commission (FMC) was the regulatory authority for the commodity derivatives market in India before it was merged with SEBI in 2015.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
An amount paid for 'Goodwill' on purchase of a business is classified as:
A. Fictitious asset
B. Current asset
C. Intangible asset
D. Deferred revenue expenditure
Discuss
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Correct Answer: Option C

Explanation:
Purchased goodwill is an intangible asset.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
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?
A. Section 194IA at 1%
B. Section 194IA at 10%
C. Section 194C at 1%
D. Section 194J at 10%
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Correct Answer: Option A

Explanation:
Section 194IA mandates TDS at 1% on the transfer of immovable property (other than agricultural land) if the consideration exceeds ₹50,00,000.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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