Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
What is the significance of the phrase 'Generally Accepted Cost Accounting Principles and Practices' (GACAP)?
What is the significance of the phrase 'Generally Accepted Cost Accounting Principles and Practices' (GACAP)?
- It formed the title of the document codifying cost accounting standards (correct)
- It referred to the maintenance of cost records
- It was a recommendation of the Expert Group
- It focused on diversities in cost accounting practices
What is the purpose of the Cost Accounting Standard - 4 (CAS-4)?
What is the purpose of the Cost Accounting Standard - 4 (CAS-4)?
- To recommend the implementation of Expert Group's suggestions
- To facilitate the development of diverse cost accounting practices
- To issue certificates for cost statements
- To codify and standardize cost accounting principles for determination of cost of production (correct)
What did the ministry of Corporate affairs decide to implement based on the recommendation of Expert Group?
What did the ministry of Corporate affairs decide to implement based on the recommendation of Expert Group?
- The maintenance of cost records
- Companies rules, 2011 (correct)
- The development of CAS
- Cost Accounting Standard - 4 (CAS-4)
What is the objective of the document codifying GACAP?
What is the objective of the document codifying GACAP?
Signup and view all the answers
What is the culmination of the developments in the practice of cost accounting in India?
What is the culmination of the developments in the practice of cost accounting in India?
Signup and view all the answers
Flashcards are hidden until you start studying
Study Notes
Significance of GACAP
- Represents a standard framework guiding cost accounting practices.
- Facilitates consistency and reliability in financial reporting across industries.
- Supports businesses in achieving transparency and accountability in cost management.
Purpose of Cost Accounting Standard - 4 (CAS-4)
- Aims to provide guidelines for determining the cost of services and specific costs incurred in service provision.
- Ensures uniformity in reporting costs associated with different services within industries.
- Helps organizations in accurate cost allocation and enhances decision-making.
Ministry of Corporate Affairs Implementation
- Decided to implement recommendations from an Expert Group focused on strengthening cost accounting regulations.
- Aims to enhance compliance and improve the regulatory framework governing cost accounting practices.
- Intended to promote better corporate governance and financial integrity.
Objective of Document Codifying GACAP
- Serves to establish a comprehensive set of guidelines and principles for cost accounting.
- Aims to standardize practices to ensure accurate and fair reporting of cost information.
- Enhances the credibility of cost data, making it readily accepted by stakeholders.
Culmination of Cost Accounting Developments in India
- Represents the maturation of cost accounting as a recognized profession and discipline.
- Reflects increased emphasis on regulatory frameworks and compliance in cost accounting practices.
- Marks the growth of a structured approach towards managing and reporting costs in various sectors in India.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
