S1: Standard costing is a technique of cost ascertainment. S2: Standard costing is a technique of cost control. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: Standard costing is a technique of cost ascertainment. S2: Standard costing is a technique of cost control. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S2 only
C. Both S1 and S2
D. S1 only
Answer: Option B
Solution (By JKSSB Mock Tests)
Standard costing is primarily a technique of cost control and performance evaluation, not just cost ascertainment. While it involves setting standards, its main purpose is to compare actuals with standards to find variances. S1 is incorrect, S2 is correct.
S1: In a partnership, if the existing profit-sharing ratio is 3:2 and the new ratio is 1:1, the sacrificing/gaining ratio is 1:1. S2: If the old ratio is 3:2 and the new ratio is 2:3, Partner A sacrifices 1/5th and Partner B gains 1/5th. Which statement(s) is/are correct?
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