CMA Intermediate · Cost Accounting · Cost Accounting Standards (CAS 1 to CAS 24)
Which of the following is the main objective of issuing Cost Accounting Standards?
Cost Accounting Standards aim to bring uniformity and consistency in cost accounting principles, methods and presentation. This improves reliability and comparability of cost data across entities. They neither replace financial statements nor fix prices nor serve tax planning.
- ATo bring uniformity and consistency in cost accounting principles and practices across organisationsCorrect
- BTo replace the financial statements prepared under the Companies Act
- CTo fix selling prices of products in each industry
- DTo reduce the income tax liability of manufacturing companies
Explanation
CAS aim to achieve uniformity and consistency in the principles, methods and presentation of cost data, improving comparability and reliability. They do not replace financial statements, fix prices or serve tax-saving purposes.
Did you get it right without looking?
One question tells you little. A timed set on Cost Accounting Standards (CAS 1 to CAS 24) shows your real accuracy, how long you take and where you lose marks.
More Cost Accounting Standards (CAS 1 to CAS 24) questions
- Which statement about the structure and scope of Cost Accounting Standards issued by the CASB is correct?
- A Pune plant employs 20 workers, each paid for 200 hours in a month at ₹150 per hour. Each worker was idle for 20 hours, of which 12 hours i…
- Under CAS 3 (Production and Operation Overheads), which treatment is correct for the cost of abnormal idle capacity?
- Under CAS 22 (Manufacturing Cost), which of the following would a manufacturing entity ordinarily include in the cost of manufacture of a pr…
- Anand Engineering budgeted production overheads of Rs 6,00,000 for 30,000 machine hours. Normal capacity is 30,000 hours. Actual overheads w…
- Under the Cost Accounting Standard on Joint Costs (CAS 18), the common costs incurred up to the split-off point are best described as costs …