A costing technique where only variable costs are charged to products, and fixed costs are written off to the P&L account in the period incurred, is: MCQ with Answer and Explanation

A costing technique where only variable costs are charged to products, and fixed costs are written off to the P&L account in the period incurred, is:

A. Job Costing

B. Absorption Costing

C. Marginal Costing

D. Standard Costing

Answer: Option C

Marginal costing strictly separates fixed and variable costs, treating fixed costs as period costs rather than product costs.

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

No comments yet. Be the first to start the discussion!

Question #1 Report Error

The 'Place of Supply' for inter-state supply is:

A. Any state

B. Location of recipient

C. The state where movement terminates

D. Location of supplier

Correct Answer: Option C

Explanation:
For inter-state, place of supply generally is the destination state.

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

Question #2 Report Error

The 'Zero-Rated Supply' under GST includes:

A. Nil-rated supplies

B. All supplies

C. Exempt supplies

D. Exports and supplies to SEZ

Correct Answer: Option D

Explanation:
Zero-rated supplies attract 0% GST, and input tax credit is available.

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

Question #3 Report Error

In the absence of a partnership deed, profits are shared:

A. In the ratio of capital

B. Based on age

C. Based on experience

D. Equally

Correct Answer: Option D

Explanation:
As per Indian Partnership Act, 1932, in absence of a deed, profits and losses are shared equally among partners.

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