Consider the following statements about the 'Money Measurement Concept': 1. Only transactions that can be expressed in monetary terms are recorded. 2. Non-monetary events like a strike or labour unrest are also recorded if they affect business. 3. The concept assumes that the purchasing power of money remains stable. Which of the above statements are correct?
Explanation:
Statement 1 is correct, 2 is incorrect because non-monetary events are not recorded. 3 is correct as an inherent assumption of the money measurement concept.
Explanation:
Variance is the difference between the budgeted (standard) cost or revenue and the actual cost or revenue, used for performance evaluation.
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