When analyzing Cost Accounting data, 'Contribution' is useful for:
A. Make or Buy decisions
B. Determining depreciation
C. Valuing Goodwill
D. Calculating Income Tax
Answer: Option A
Solution (By JKSSB Mock Tests)
Contribution (Sales - Variable Cost) is a key metric in marginal costing used for managerial decisions like 'Make or Buy', dropping a product, or accepting special orders.
Explanation:
GST is a comprehensive, multi-stage, destination-based indirect tax. It is levied on every value addition, specifically on the supply of goods and services. Both statements are correct.
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