A: Standard costing is used for cost control. R: It involves setting predetermined costs and analyzing variances. Choose the correct option. MCQ with Answer and Explanation
A: Standard costing is used for cost control. R: It involves setting predetermined costs and analyzing variances. Choose the correct option.
A. Both A and R are true and R is the correct explanation of A
B. A is false but R is true
C. A is true but R is false
D. Both A and R are true but R is NOT the correct explanation of A
Answer: Option A
Solution (By JKSSB Mock Tests)
Standard costing is a management tool for cost control. It achieves this by establishing standard (predetermined) costs and comparing them with actual costs to identify and analyze variances for corrective action. R correctly explains A.
Explanation:
When cash is realized in installments during dissolution, it is distributed using either the Maximum Loss Method or the Surplus Capital (Proportionate Capital) Method to ensure partners' capital accounts are correctly adjusted.
The 'Interim Financial Reporting' (Ind AS 34) suggests that the same accounting policies should be applied as in annual statements. This is an application of:
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