Which accounting standard is primarily concerned with the preparation of cost sheets?
Practice Questions
1 question
Q1
Which accounting standard is primarily concerned with the preparation of cost sheets?
IFRS
GAAP
IAS
AS-2
AS-2 (Accounting Standard 2) deals with the valuation of inventories, which is relevant for cost sheet preparation.
Questions & Step-by-step Solutions
1 item
Q
Q: Which accounting standard is primarily concerned with the preparation of cost sheets?
Solution: AS-2 (Accounting Standard 2) deals with the valuation of inventories, which is relevant for cost sheet preparation.
Steps: 5
Step 1: Understand what a cost sheet is. A cost sheet is a document that shows the costs involved in producing a product or service.
Step 2: Learn about accounting standards. These are rules that guide how financial information should be reported.
Step 3: Identify which accounting standard relates to costs. AS-2 (Accounting Standard 2) is the standard that focuses on how to value inventories.
Step 4: Recognize that inventory valuation is important for cost sheets because it helps determine the cost of goods sold and overall production costs.
Step 5: Conclude that AS-2 is the accounting standard primarily concerned with the preparation of cost sheets.
