Which of the following is a variable cost? MCQ with Answer and Explanation

Question
Which of the following is a variable cost?
A. Depreciation
B. Salary of manager
C. Direct material cost
D. Rent of factory
Answer: Option C
Solution (By JKSSB Mock Tests)
Direct material cost is a variable cost because it varies directly and proportionately with the level of production.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Anti-Dumping Duty' is imposed to:
A. Increase imports
B. Promote exports
C. Protect domestic industry from cheap imports sold below normal value
D. Reduce customs duty
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Correct Answer: Option C

Explanation:
Anti-dumping duty is a trade remedy measure.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
The 'Dividend Payout Ratio' is:
A. Dividend per share / Earnings per share
B. Dividend / Total assets
C. Earnings / Dividend
D. Dividend / Sales
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Correct Answer: Option A

Explanation:
DPR measures proportion of earnings distributed as dividends.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Full Disclosure Principle' requires:
A. Disclosure of all material information in financial statements
B. No disclosure
C. Disclosure of only assets
D. Disclosure of only profits
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Correct Answer: Option A

Explanation:
Full disclosure means all significant information should be reported in financial statements and notes.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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