Under Marginal Costing, stock is valued at: MCQ with Answer and Explanation

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Under Marginal Costing, stock is valued at:

A. Variable Manufacturing Cost

B. Fixed Cost

C. Total Cost

D. Prime Cost

Answer: Option A

Solution (By JKSSB Mock Tests)

Marginal costing values inventory strictly on variable costs, treating fixed overheads as period costs written off immediately.

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

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Question #1

The 'Vivad se Vishwas' scheme relates to:

A. Indirect tax disputes

B. Direct tax disputes

C. Customs disputes

D. GST disputes

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Correct Answer: Option B

Explanation:
Vivad se Vishwas is a scheme for settlement of pending income tax disputes.

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

Question #2

In a partnership firm, a partner's current account is maintained to record:

A. Drawings, interest on capital, salary, share of profit, etc.

B. Only profits

C. Only capital contributions

D. Only loans to partners

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Correct Answer: Option A

Explanation:
Fixed capital method keeps capital account for initial capital and current account for all other adjustments.

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Question #3

Sunk costs are:

A. Future costs that differ among alternatives

B. Relevant for decision making

C. Variable costs of a project

D. Costs that have already been incurred and cannot be recovered

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Correct Answer: Option D

Explanation:
Sunk costs are past expenditures. Since they cannot be changed by present or future decisions, they are considered irrelevant for decision making.

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

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