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

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Under Marginal Costing, stock is valued at:

A. Fixed Cost

B. Prime Cost

C. Total Cost

D. Variable Manufacturing Cost

Answer: Option D

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

Which standard ensures consistency in classifying cash flows from operating, investing, and financing activities in India?

A. Ind AS 10

B. Ind AS 2

C. Ind AS 7

D. Ind AS 1

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Correct Answer: Option C

Explanation:
Ind AS 7 (equivalent to IAS 7) deals specifically with the preparation and presentation of the Statement of Cash Flows.

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

Question #2

Working capital is calculated as:

A. Quick assets - Current liabilities

B. Current assets - Current liabilities

C. Total assets - Total liabilities

D. Fixed assets - Long-term liabilities

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Correct Answer: Option B

Explanation:
Working capital = Current assets - Current liabilities.

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

Question #3

The 'Threats to Independence' include:

A. Self-interest, self-review, advocacy, familiarity, and intimidation threats

B. Only self-interest

C. No threats

D. Only intimidation

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Correct Answer: Option A

Explanation:
The Code identifies five categories of threats.

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

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