Disclosure of the cost of materials consumed expense is required only in case of the companies.

construction

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manufacturing

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investment

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banking

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Solution

The correct option is B manufacturing
Only manufacturing company incurred expenses such as the cost of materials consumed. So disclosure of the cost of material consumed is required in case of the manufacturing company.

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Similar questions

Disclosure of cost of materials consumed expense is required only in case of ___

Q. In financial statements, adequate disclosure is ensured by companies as per the requirements of.
I. Management policies
II. Materiality concept
III. Disclosure concept
IV. Relevant provision of the Companies Act
V. Internal control
Of these statements.

With the help of the following information obtained from the books of Raj Silk Mills, prepare Comparative Statement of Profit and Loss for the year ended 31st March, 2016 :

$\begin{matrix} Particulars & 31 st March, 2016 & 31 st March, 2015 Revenue from Operations & 300 % of Cost of & 200 % of Cost of Materials Consumed & Materials Consumed Expenses : Cost of Materials Consumed & Rs. 12, 00, 000 & Rs. 10, 00, 000 Other Expenses & 20 % of Cost of & 10 % of Cost of Materials Consumed & Materials Consumed Tax & 50 % & 50 % \end{matrix}$

Q. Revenue from operations = Rs 1,00,000
Finance cost = Rs 5,000
Cost of materials consumed = Rs 15,000
Employee benefit expenses = Rs 20,000
Depreciation and Amortisation = Rs 10,000

Find the amount of profit before tax

Vasundhra Ltd., a Company manufacturing high quality sanitary equipments decided to appoint instructors to impart free training to the youth of the city so that they may get suitable employment in various industrial units. Following information is derived from the books of the Company:

$\begin{matrix} Particulars & 31.3.2017 & 31.3.2016 Revenue from Operations & 12, 00, 000 & 10, 00, 000 Cost of Materials Consumed & 6, 60, 000 & 6, 00, 000 Employee Benefit Expenses & 1.20.000 & 1, 20, 000 Other Expenses & 96, 000 & 50, 000 \end{matrix}$

You are required to :

(a) Prepare a Common Size Statement of Profit & Loss, and

(b) Identify the value involved.

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Disclosure of the cost of materials consumed expense is required only in case of the companies.

The correct option is B manufacturing Only manufacturing company incurred expenses such as the cost of materials consumed. So disclosure of the cost of material consumed is required in case of the manufacturing company.

The correct option is B manufacturing
Only manufacturing company incurred expenses such as the cost of materials consumed. So disclosure of the cost of material consumed is required in case of the manufacturing company.