The 'Theory of Constraints' (TOC) in cost management focuses on: MCQ with Answer and Explanation

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The 'Theory of Constraints' (TOC) in cost management focuses on:

A. Identifying and managing the bottleneck operation

B. Increasing inventory

C. Reducing quality

D. Reducing all costs

Answer: Option A

Solution (By JKSSB Mock Tests)

TOC aims to maximise throughput by managing constraints.

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

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Question #1

Nominal accounts are closed at the end of the accounting year by transferring them to:

A. Capital Account

B. Suspense Account

C. Trading and Profit & Loss Account

D. Balance Sheet

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Correct Answer: Option C

Explanation:
Nominal accounts represent expenses and incomes, which are summarized into the Trading and P&L accounts to determine net profit/loss.

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

Question #2

The 'Cryptocurrency' as per Indian laws is:

A. Legal tender

B. Not considered legal tender but taxed

C. Only allowed for banks

D. Banned completely

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Correct Answer: Option B

Explanation:
Cryptocurrencies are not legal tender in India but gains are taxed.

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

Question #3

Under the Income Tax Act, if a taxpayer has a business profit of ₹3,00,000 and a brought forward business loss of ₹2,00,000, what is the total income after set-off?

A. ₹3,00,000

B. ₹2,00,000

C. ₹5,00,000

D. ₹1,00,000

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Correct Answer: Option D

Explanation:
Brought forward business loss can be set off against current year business profit. Total income = ₹3,00,000 (Profit) - ₹2,00,000 (B/F Loss) = ₹1,00,000.

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

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