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CMA Final · Cost and Management Audit · Basics of Cost Audit

Section 148(1) of the Companies Act, 2013 empowers the Central Government, by order, to direct that certain particulars be included in the books of account of a prescribed class of companies. Which particulars does it refer to?

Section 148(1) lets the Central Government direct that particulars relating to the utilisation of material or labour, or other prescribed items of cost, be included in the books of account of a prescribed class of companies engaged in producing goods or providing services.

  1. AOnly the particulars of dividends declared and paid
  2. BParticulars relating to utilisation of material or labour or to other items of cost as may be prescribedCorrect
  3. COnly the personal details of directors and key managerial personnel
  4. DParticulars of share capital and debentures issued

Explanation

Section 148(1) refers to particulars relating to the utilisation of material or labour or to other items of cost as may be prescribed. These must be included in the books of account of the specified class of companies producing goods or providing services. The other options concern matters outside cost records.

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