Which accounting principle requires that the same accounting methods should be used from year to year? MCQ with Answer and Explanation

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Which accounting principle requires that the same accounting methods should be used from year to year?

A. Materiality

B. Accrual

C. Consistency

D. Going concern

Answer: Option C

Solution (By JKSSB Mock Tests)

Consistency ensures comparability by applying same policies consistently.

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

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Question #1

Under Activity Based Costing (ABC), costs are allocated based on:

A. Machine Hours

B. Cost Drivers

C. Volume of Production only

D. Direct Labor Hours

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Correct Answer: Option B

Explanation:
ABC traces overheads to specific activities and allocates them to products based on the consumption of 'cost drivers'.

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Question #2

In cost accounting, Idle Time wages are usually charged to:

A. Both B and C

B. Factory Overheads

C. Profit & Loss Account (if abnormal)

D. Direct Labor Account

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Correct Answer: Option A

Explanation:
Normal idle time is charged to Factory Overheads, while abnormal idle time (e.g., strikes, power failure) is charged to the Costing P&L Account.

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

Question #3

The 'Performance Budget' focuses on:

A. How much money is spent

B. When the money is spent

C. Who spends the money

D. What is achieved with the money spent

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Correct Answer: Option D

Explanation:
It links outlays to outputs/outcomes.

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

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