CMA Final · Cost and Management Audit · Overview of Cost Accounting Standards and GACAP
Generally Accepted Cost Accounting Principles (GACAP) issued by ICMAI are primarily intended to do which of the following?
GACAP provides a framework of principles and concepts for cost accounting so that cost determination is uniform and consistent across entities. It does not replace statutory audit provisions, set tax rates or fix cost auditor remuneration.
- AProvide a framework of principles for uniform and consistent cost accounting practiceCorrect
- BReplace the Companies Act provisions on statutory audit
- CPrescribe income tax rates on cost audit fees
- DFix the remuneration payable to a cost auditor
Explanation
GACAP sets out the fundamental principles and concepts that guide cost accounting practice, supporting uniformity and consistency in cost determination. It does not substitute statutory audit law, tax rates or fee fixation.
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