The term 'Variance' in budgetary control refers to: MCQ with Answer and Explanation

Question

Share Report Error

The term 'Variance' in budgetary control refers to:

A. The total budget

B. The difference between budgeted and actual performance

C. The profit margin

D. The cost of production

Answer: Option B

Solution (By JKSSB Mock Tests)

Variance is the difference between the budgeted (standard) cost or revenue and the actual cost or revenue, used for performance evaluation.

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 decisions relates to determining the optimal capital structure?

A. Dividend Decision

B. Investment Decision

C. Financing Decision

D. Liquidity Decision

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
The financing decision involves choosing the right mix of debt and equity (capital structure) to minimize the overall cost of capital.

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

Question #2

S1: Under GST, the 'E-way bill' is required for the movement of goods where the consignment value exceeds ₹50,000. S2: The E-way bill is generated on the common portal by the registered person before the commencement of the movement of goods. Which statement(s) is/are correct?

A. Both S1 and S2

B. S1 only

C. Neither S1 nor S2

D. S2 only

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Both statements are correct. Rule 138 of the CGST Rules mandates an e-way bill for goods valued over ₹50,000, and it must be generated by the supplier/recipient before the goods are moved.

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

Question #3

When goods are distributed as free samples, the adjustment entry requires:

A. Debiting Advertisement A/c, Crediting Trading A/c (or Purchases A/c)

B. Debiting P&L A/c, Crediting Sales A/c

C. Debiting Free Samples A/c, Crediting Cash A/c

D. Debiting Purchases A/c, Crediting Advertisement A/c

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option A

Explanation:
Free samples are an advertising expense (debit), and they reduce the stock of purchased goods at cost price (credit Purchases/Trading).

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

Explore All Accountancy and Book Keeping MCQs