In cost accounting, 'Cost Unit' means: MCQ with Answer and Explanation

In cost accounting, 'Cost Unit' means:
A. An expense head
B. A group of costs
C. A location where costs are incurred
D. A unit of product or service for which cost is ascertained
Answer: Option D
Solution (By JKExamLibrary)
Cost unit is a quantitative unit of product or service for which costs are determined, e.g., per ton, per km.

Discuss this Question (0)

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

Practice More Accountancy and Book Keeping Questions

Question #1 Report Error
The 'e-Way Bill' validity for distance up to 100 km is:
A. 3 days
B. 2 days
C. 1 day
D. 5 days

Correct Answer: Option C


Explanation:
For up to 100 km, e-way bill is valid for 1 day.

Question #2 Report Error
The 'Advance Ruling' under GST provides:
A. Penalty imposition
B. Audit report
C. Registration
D. Clarity on tax liability on proposed transactions

Correct Answer: Option D


Explanation:
Advance ruling helps businesses determine GST implications before undertaking a transaction.

Question #3 Report Error
Which of the following is an extraordinary item?
A. Salary paid
B. Loss due to fire in a factory (not regular)
C. Sale of goods
D. Purchase of raw material

Correct Answer: Option B


Explanation:
Extraordinary items are unusual and infrequent, e.g., loss from natural disaster, expropriation.