OBJECTIVE QUESTIONS 1. In each of the following only one statement/item is correct. State which. (i) Financial Accounting helps in (a) ascertaining the financial position of the concerned firm, (b) establishing the efficiency of operations, (c) providing data for fixing prices of the products, (d) controlling costs. (ii) Establishment of a costing system in India is essential. (a) in the case of all industrial concerns, (b) for all companies having a paid up capital of . 25 lakhs. (c) in the case of such companies as may be required to maintain costing records by the Central Government under Section 209 of the Companies Act. (d) in case the concerned firm is covered by the Monopolies and Restrictive Trade Practices Act. (iii) Cost Accounting (a) like Financial Accounting is exact and precise, (b) necessarily works on the basis of estimates and, therefore, has to be satisfied with reasonable accuracy. (c) deals only with future costs and ignores historical cost. (d) analyses historical costs. (iv) Cost Accounting is useful for (a) only industrial concerns in the private sector since only they wish to maximise profits. (b) all industrial concerns, whether in the private sector or the public sector, but not for service organisations like banks or insurance companies. (c) all profit seeking concerns provided they are not subject to perfect competition. (d) anyone using scarce resources. (v) A farmer producing only wheat for which price is fixed by government should have a costing system in order to