CMA Final · Cost and Management Audit · Overview of Cost Accounting Standards and GACAP
Under the Cost Accounting Standards issued by ICMAI, which standard deals with the treatment of employee cost in cost statements?
CAS 7, titled Employee Cost, is the standard that prescribes how employee cost is determined, assigned and presented in cost statements. The other options deal with material cost, classification of cost and captive consumption, so they do not address employee cost directly.
- ACAS 7 Employee CostCorrect
- BCAS 4 Cost of Production for Captive Consumption
- CCAS 6 Material Cost
- DCAS 1 Classification of Cost
Explanation
CAS 7 is titled Employee Cost and lays down principles for measuring, assigning and presenting employee cost. CAS 6 covers material cost, CAS 1 covers classification of cost, and CAS 4 covers captive consumption cost.
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