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

Question
Which of the following is a variable cost?
A. Salary of manager
B. Direct material cost
C. Depreciation
D. Rent of factory
Answer: Option B
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
A trial balance shows equal totals but still contains an error of ₹2,000 where purchase of stationery was debited to furniture account. This is:
A. Compensating error
B. Error of commission
C. Error of omission
D. Error of principle
Discuss
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Correct Answer: Option D

Explanation:
Stationery is revenue expenditure, furniture is asset. Treating revenue as capital is error of principle.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2
Which of the following is a recent development in accounting?
A. Blockchain-based triple-entry accounting
B. Handwritten journals
C. Paper vouchers
D. Manual ledger posting
Discuss
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Correct Answer: Option A

Explanation:
Blockchain is an emerging technology enabling triple-entry accounting, enhancing transparency and security.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3
The 'Provision for Bad Debts' in banking companies is governed by:
A. SEBI
B. Companies Act only
C. RBI guidelines and Income Tax Act
D. Income Tax Act alone
Discuss
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Correct Answer: Option C

Explanation:
Banks must follow RBI's prudential norms for NPA provisioning, while tax deduction is under Section 36(1)(viia).
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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