CMA Intermediate · Corporate Accounting and Auditing · Cost Audit
Under Section 148 of the Companies Act, 2013, who is empowered to direct that particulars relating to utilisation of material, labour or other items of cost be included in the books of account of a prescribed class of companies?
The Central Government, acting by order, has the power under Section 148(1) to direct that cost particulars such as utilisation of material and labour be included in the books of account of a prescribed class of companies producing specified goods or services.
- AThe Board of Directors of the company
- BThe Central Government, by orderCorrect
- CThe Institute of Cost Accountants of India
- DThe statutory auditor appointed under section 139
Explanation
Section 148(1) says the Central Government may, by order, direct that particulars of utilisation of material or labour or other prescribed cost items be included in the books of account of a class of companies producing prescribed goods or providing prescribed services. The Board, the Institute and the statutory auditor have no such power under this sub-section.
Did you get it right without looking?
One question tells you little. A timed set on Cost Audit shows your real accuracy, how long you take and where you lose marks.
More Cost Audit questions
- Under section 132 of the Companies Act, 2013, which of the following is a function of the National Financial Reporting Authority (NFRA)?
- Section 148 separates the requirement to include cost particulars in books from the requirement of a cost audit. Which statement correctly r…
- A company receives a copy of the cost audit report prepared under a direction under Section 148(2) on 12 March. By which date must it furnis…
- Under section 148(1) of the Companies Act, 2013, the Central Government may direct that certain particulars be included in the books of acco…
- Before issuing an order under section 148(1) for a class of companies regulated under a special Act (for example, a banking or insurance reg…
- Which statement about the appointment of a cost auditor under Section 148 is correct?