Skip to content

CMA Intermediate · Cost Accounting · Cost Accounting Standards (CAS 1 to CAS 24)

Which statement about the structure and scope of Cost Accounting Standards issued by the CASB is correct?

A Cost Accounting Standard follows a prescribed format that includes objective, scope, definitions, principles of measurement, assignment of cost, presentation and disclosure. It is not merely a glossary and applies to cost records and statements generally, not only to audit reports or single industries.

  1. AStandards are issued in a prescribed format covering aspects like objective, scope, definitions, principles of measurement, assignment, presentation and disclosureCorrect
  2. BEach standard consists only of a list of definitions without measurement principles
  3. CStandards apply only to cost audit reports and not to cost records
  4. DStandards are issued separately for each industry and cannot be general

Explanation

CAS follow a standard structure including introduction, objective, scope, definitions, measurement, assignment of cost, presentation and disclosure, and effective date. Therefore they are not just definitions, are not limited to audit reports, and include general standards applicable across industries.

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.

Practise Cost Accounting Standards (CAS 1 to CAS 24)Free diagnostic mock

More Cost Accounting Standards (CAS 1 to CAS 24) questions