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Home Questions 8TJUQGJGZ6
Target Exam

CUET

Subject

-- Accountancy Part C

Chapter

Use of Spreadsheet in Business Applications

Question:

What does Dearness Allowance (DA) compensate for?

Options:

Housing expenses

Fuel charges

Erosion in purchasing power due to inflation

Commuting cost

Correct Answer:

Erosion in purchasing power due to inflation

Explanation:

The correct answer is option 3- Erosion in purchasing power due to inflation.

Dearness Allowance (DA) compensate for Erosion in purchasing power due to inflation.

Dearness Allowance is a compensation for erosion in the purchasing power of wage earner due to price rise.  It is granted by the Government periodically as a percentage of (Basic Pay + Dearness Pay, if applicable).

 

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