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

Question
Which of the following is a feature of standard costing?
A. It ignores variances
B. It uses predetermined costs for control purposes
C. It is a historical cost system
D. It is used for external reporting
Answer: Option B
Solution (By JKSSB Mock Tests)
Standard costing uses predetermined (standard) costs to compare with actual costs, allowing for variance analysis and cost control.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Question #1
The 'E-way Bill' is generated through the portal:
A. Customs portal
B. GSTN portal (ewaybillgst.gov.in)
C. Income Tax portal
D. MCA portal
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Correct Answer: Option B

Explanation:
E-way bill is generated on the dedicated portal ewaybillgst.gov.in.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
An auditor is considered a 'watchdog and not a bloodhound'. This implies:
A. The auditor must approach the work with reasonable care and skepticism, but not assuming everyone is dishonest
B. The auditor works only at night
C. The auditor must be aggressive in finding fraud
D. The auditor investigates only cash transactions
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Correct Answer: Option A

Explanation:
Coined in the Kingston Cotton Mill case, it means an auditor must exercise reasonable skill and care but isn't required to approach the audit with suspicion of fraud.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
Which accounting standard deals with the presentation of financial statements?
A. AS 9
B. AS 2
C. AS 1
D. AS 10
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Correct Answer: Option C

Explanation:
AS 1 'Disclosure of Accounting Policies' deals with the classification and presentation of financial statements and the disclosure of accounting policies.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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