Calculating ratio for industry analysis implies all of the following except,
A. it is difficult to assess and rely on the average of ratios of the strong and weak firms in the industry
B. it helps to assess the financial standing of the firm as compared to other firms in the same industry
C. it is not possible to standardise the accounting data of various firms following varied accounting policies
D. comparison of average of the industry with those of the firm
Answer: Option C
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
C. sunk cost
D. shutdown cost
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