Prime Cost consists of: MCQ with Answer and Explanation
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Question #1
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In 'Reconciliation of Cost and Financial Accounts', which item is added to financial profit to arrive at costing profit?
Correct Answer: Option A
Explanation:
Notional expenses (like interest on own capital) appear in cost accounts but not in financial accounts. So if costing profit is lower, we add it back to financial profit to reconcile.
Notional expenses (like interest on own capital) appear in cost accounts but not in financial accounts. So if costing profit is lower, we add it back to financial profit to reconcile.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #2
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Which of the following decisions relates to determining the optimal capital structure?
Correct Answer: Option A
Explanation:
The financing decision involves choosing the right mix of debt and equity (capital structure) to minimize the overall cost of capital.
The financing decision involves choosing the right mix of debt and equity (capital structure) to minimize the overall cost of capital.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
Question #3
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The 'Section 194O' (TDS on e-commerce) rate is:
Correct Answer: Option B
Explanation:
TDS at 1% on gross amount of sales facilitated by e-commerce operator.
TDS at 1% on gross amount of sales facilitated by e-commerce operator.
This question belongs to:
Accountancy and Statistics
Accountancy and Book Keeping
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