Which of the following is a feature of marginal costing? MCQ with Answer and Explanation

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Which of the following is a feature of marginal costing?

A. It values inventory at full cost

B. It includes fixed overheads in product cost

C. It is used for external reporting

D. It distinguishes between fixed and variable costs

Answer: Option D

Solution (By JKSSB Mock Tests)

Marginal costing strictly separates costs into fixed and variable components, charging only variable costs to the product.

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A business buying machinery pays 18% GST. Can it claim Input Tax Credit (ITC) on this GST?

A. No, ITC is only for raw materials

B. No, capital goods are exempted from ITC

C. Yes, but only 50%

D. Yes, provided the machinery is used in the course of business

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Correct Answer: Option D

Explanation:
ITC can be claimed on capital goods (like machinery) used for business purposes, subject to certain conditions in the GST Act.

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Question #2

Which of the following is a feature of the Indian Financial Management System?

A. Zero-based budgeting is prohibited

B. Absence of audit

C. Decentralized budgeting only

D. Use of appropriation accounts

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Correct Answer: Option D

Explanation:
Indian government accounting uses appropriation accounts to compare actual spending against grants approved by Parliament.

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Question #3

The 'Anti-Dumping Duty' is imposed to:

A. Protect domestic industry from cheap imports sold below normal value

B. Promote exports

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D. Increase imports

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Correct Answer: Option A

Explanation:
Anti-dumping duty is a trade remedy measure.

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