Under Cost Accounting, abnormal wastage of material is transferred to: MCQ with Answer and Explanation

Question Report Error
Under Cost Accounting, abnormal wastage of material is transferred to:
A. Costing Profit & Loss Account
B. Finished Goods Account
C. Work in Progress Account
D. Factory Overheads Account
Answer: Option A
Solution (By JKExamLibrary)
Abnormal losses are not treated as a cost of production; they are transferred directly to the Costing P&L account to avoid inflating product costs.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Practice More Accountancy and Book Keeping Questions

Question #1 Report Error
Which of the following is not a method of depreciation?
A. Straight-line
B. Sum of years' digits
C. Machine hour rate
D. Perpetual inventory method
Discuss

Correct Answer: Option D

Explanation:
Perpetual inventory method is a method of inventory valuation, not depreciation.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #2 Report Error
The 'Constitutional Amendment' that paved way for GST was:
A. 73rd Amendment
B. 42nd Amendment
C. 101st Amendment
D. 122nd Amendment
Discuss

Correct Answer: Option C

Explanation:
The Constitution (One Hundred and First Amendment) Act, 2016 introduced GST.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
Question #3 Report Error
A 'Secret Reserve' is created by:
A. Undervaluation of assets or overstatement of liabilities
B. Disclosure in notes
C. Only banks
D. Overstatement of assets
Discuss

Correct Answer: Option A

Explanation:
Secret reserve is created by showing lower profits, like undervaluing stock or overstating provision, not disclosed in balance sheet.
This question belongs to: Accountancy and Statistics Accountancy and Book Keeping
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