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

Question

Share Report Error

The 'Target Costing' approach begins with:

A. Calculating actual cost

B. Budgeting

C. Determining cost of production

D. Setting a desired selling price and then deducting desired profit margin to arrive at target cost

Answer: Option D

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

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

The 'GST Audit' by a chartered accountant/cost accountant was abolished from:

A. FY 2021-22

B. FY 2019-20

C. FY 2020-21

D. Never existed

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Finance Act 2021 removed the requirement of GST audit by CA/CMA and self-certification was introduced from FY 2020-21.

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

Question #2

Under GST, IGST revenue is:

A. Kept entirely by the Central Government

B. Deposited into the RBI reserves

C. Kept entirely by the State Government

D. Apportioned between the Central and the Destination State Government

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option D

Explanation:
Being a destination-based tax, IGST is collected by the Centre and shared with the destination state where the goods are consumed.

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

Question #3

Which of the following transactions will not affect the total of the Balance Sheet?

A. Cash deposited into bank

B. Sale of goods on credit at a profit

C. Purchase of machinery on credit

D. Payment to a creditor

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Cash to bank is just a change in composition of assets; total assets unchanged. Other transactions change total assets/liabilities.

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

Explore All Accountancy and Book Keeping MCQs