Under Cost Accounting, abnormal wastage of material is transferred to: MCQ with Answer and Explanation

Question

Share Report Error

Under Cost Accounting, abnormal wastage of material is transferred to:

A. Factory Overheads Account

B. Finished Goods Account

C. Costing Profit & Loss Account

D. Work in Progress Account

Answer: Option C

Solution (By JKSSB Mock Tests)

Abnormal losses are not treated as a cost of production; they are transferred directly to the Costing P&L account to avoid inflating product costs.

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

Share Report

The 'Budgetary Control' system involves: 1. Establishment of budgets, 2. Continuous comparison of actuals with budgets, 3. Taking corrective action, 4. Performance evaluation. Which of these are essential elements?

A. 1, 2 and 3 only

B. 2 and 4 only

C. 1, 2, 3 and 4

D. 1 and 2 only

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
All four are integral parts of budgetary control.

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

Question #2

Share Report

The 'Equalisation Levy' on e-commerce supply of goods/services is applicable to non-resident e-commerce operators with:

A. Any revenue

B. No threshold

C. Annual revenue exceeding ₹2 crore from India

D. Only if they have a PE

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
2% equalisation levy applies if the non-resident e-commerce operator's revenue from India exceeds ₹2 crore.

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

Question #3

Share Report

In financial management, 'Float' refers to:

A. Sinking fund investments

B. The amount of petty cash

C. The time difference between writing a cheque and its actual clearance from the bank

D. Issuing new shares

View Answer & Solution Discuss

Get Complete Subject PDF for Accountancy and Statistics

Correct Answer: Option C

Explanation:
Float is the delay in the clearing system, creating a temporary discrepancy between the firm's cash balance and the bank's ledger balance.

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

Explore All Accountancy and Book Keeping MCQs