Costing

8. Assertion (A) Increasing the value of closing inventory increases profit. Reason (R) Increasing the value of closing inventory reduces cost of goods sold.

Both (A) and (R) are true
(A) is true, but (R) is false
(A) is false, but (R) is true
Both (A) and (R) are false

Detailed SolutionAssertion (A) Increasing the value of closing inventory increases profit. Reason (R) Increasing the value of closing inventory reduces cost of goods sold.

10. Which of the following statements is true about estimated costs and standard costs?

Standard costs are based on scientific analysis and engineering studies, while estimated costs are based on a historical basis
Standard cost emphasis is on 'what cost will be', while estimated cost emphasis is on 'what cost should be'
Standard costs are frequently revised compared to the estimated cost
Estimated costs are stable than standard costs

Detailed SolutionWhich of the following statements is true about estimated costs and standard costs?

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