Question

______________ accounting is not only a positive science but also a normative science because it includes techniques of budgetary control and standard costing.

• A. Financial
• B. Cost
• C. Both A and B
• D. None of these

Answer 1

The correct option is B Cost

Positive approach to the cost accounting is presents an explanation of the different practices that are currently being adopted so that the best option can be chosen , whereas the normative approach to the cost accounting is a special approach which is based on defining the things that should be instead of what actually is.