S1: In standard costing, the 'Material Mix Variance' arises when the actual mix of materials used differs from the standard mix. S2: If the actual mix is changed due to the unavailability of a specific material, the variance is calculated using the original standard mix. Which statement(s) is/are correct?
Explanation:
S1 is correct. S2 is incorrect because when the actual mix is altered due to unavailability, the Material Mix Variance must be calculated using the Revised Standard Mix, not the original standard mix.
The 'Fair Value Measurement' (Ind AS 113) defines fair value as:
A.Liquidation value
B.Historical cost
C.Replacement cost
D.Price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
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