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 but R is NOT the correct explanation of A
B. A is true but R is false
C. Both A and R are true and R is the correct explanation of A
D. A is false but R is true
Answer: Option C
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:
Posting to the wrong account (error of principle or wrong personal account) keeps the debit and credit totals equal, so the trial balance still agrees.
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