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      Question

      Which of the following statements is

      correct?
      A It is optional for a company to have financial accounting. Correct Answer Incorrect Answer
      B There is no difference between standard costing and budgeting. Correct Answer Incorrect Answer
      C Contribution is the difference between the selling price and the variable cost. Correct Answer Incorrect Answer
      D Constraint on various financial resources is also known a key factor or limiting factor Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      • Financial accounting is mandatory for companies. The accounts have to be prepared as per the ICAI accounting standards. Managerial accounting is optional. • Standard costing and budgeting is not the same. Standard costing is used to calculate the expected costs of products . It's distinct from general budget setting because it concentrates on cost units, in other words the cost of what the business produces, as opposed to the costs of the business's sections or departments. • A limiting factor would be a variable that impedes the operation or growth of a business . Examples include sales demand, labour, materials or operational constraints.

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