A 'Standard Cost' is: MCQ with Answer and Explanation

A 'Standard Cost' is:

A. Average cost

B. Historical cost

C. Actual cost incurred

D. A predetermined cost based on technical estimates

Answer: Option D

Standard cost is a scientifically predetermined cost used as a benchmark for performance evaluation.

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

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Question #1 Report Error

The 'Capital Gains' from sale of long-term listed equity shares (STT paid) exceeding ₹1 lakh are taxed at:

A. Exempt

B. 10% without indexation

C. 20% with indexation

D. 15%

Correct Answer: Option B

Explanation:
LTCG on listed equity shares/equity-oriented funds exceeding ₹1 lakh is taxed at 10% without indexation.

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

Question #2 Report Error

The 'GST Compensation to States' is for a period of:

A. 10 years

B. 3 years

C. Indefinite

D. 5 years

Correct Answer: Option D

Explanation:
Compensation to states for revenue loss was guaranteed for 5 years from GST implementation (2017-2022).

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

Question #3 Report Error

In the Trading Account, 'Consumable Stores' used in production are:

A. Debited to Trading Account

B. Ignored

C. Shown as asset

D. Debited to P&L Account

Correct Answer: Option A

Explanation:
Consumable stores are direct materials, so they are debited to Trading Account.

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