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DIRECTIONS for the question:Read the following passage and answer.It has long been customary to prepare a balance sheet for the financial year. This gives a bird’s eye view of the state of the firm at the end of that year. It provides a static view of the business. Comparison of the returns over a period of years provides information regarding the progress which is being made. And the dynamic view is more important for the purpose of estimating future prospects than the static.But in such accounts the unit is the Firm, or an establishment or department under the control of that firm, the unit with which the Firm itself works is the product which it makes and sells, and the balance sheet is built up from the series of transactions connected with that unit. The achievement of cost accountancy is to provide a continuous balance sheet for the product or process unit, and thereby to afford information of extreme value to the Firm.A good system of cost accounting serves many purposes. First it enables the manufacturer, by weekly examining one special card, to read the past history of the production of any article. He may compare costs at different times, or under different methods of manufacture, and so locate waste and inefficiency. By comparing a group of cards, each giving the factory history of one article or process, he is able to determine the relative profitableness of different classes of work. This knowledge in turn enables him to determine the line of most profitable advance if he decides to extend his factory, or the most advantageous class of work to surrender to his competitors if there is no room for further expansion. It is not suggested that a good system of costing is a guarantee of profit. Success in business will depend upon the qualities of the manufacturer. “Business” is an art, not a science. No amount of scientific knowledge will compensate for the absence of the personal qualities necessary in industry. Nevertheless detailed and accurate information will serve as a valuable guide, and will give the business “instinct” far greater scope than it would otherwise enjoy. Elaborate accounts provide that information, and thus represent, within limits, economy rather than waste.Moreover, as one authority and pioneer states, they serve “as an undoubted moral check: a proper cost system is a silent, unseen power felt by every employee, a power he himself willingly or unwillingly puts and keeps in operation; it works alongside of him, and is automatic and inexorable.” This very power of checking results sometimes forms one of the obstacles in getting a cost system introduced. Managers and clerical staff who work away in rule-of-thumb fashion, guessing and approximating, charging too much here and too little there, dread the revelations which would result from the searchlight effect of a scientific record.Finally, cost accounting is an indispensable preliminary to estimating any scientific plan. Many manufacturers still underrate the importance of the function of the estimating clerk. Foolish price-cutting inevitably follows, and contracts which appear at first not unprofitable are ultimately found to be extremely unremunerative. It is assumed that during a period of depression, contracts which cover prime or direct costs are less unprofitable than idleness. Even when normal conditions are restored, the firm is apt to make wrong estimates of the additional costs of manufacture.Q. In this context ‘a searchlight effect’ woulda)reveal all the details of a businessb)reveal the lacunae in the businessc)leave no room for doubt in any businessd)indicate the implications of business dealsCorrect answer is option 'B'. Can you explain this answer? for CLAT 2024 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about DIRECTIONS for the question:Read the following passage and answer.It has long been customary to prepare a balance sheet for the financial year. This gives a bird’s eye view of the state of the firm at the end of that year. It provides a static view of the business. Comparison of the returns over a period of years provides information regarding the progress which is being made. And the dynamic view is more important for the purpose of estimating future prospects than the static.But in such accounts the unit is the Firm, or an establishment or department under the control of that firm, the unit with which the Firm itself works is the product which it makes and sells, and the balance sheet is built up from the series of transactions connected with that unit. The achievement of cost accountancy is to provide a continuous balance sheet for the product or process unit, and thereby to afford information of extreme value to the Firm.A good system of cost accounting serves many purposes. First it enables the manufacturer, by weekly examining one special card, to read the past history of the production of any article. He may compare costs at different times, or under different methods of manufacture, and so locate waste and inefficiency. By comparing a group of cards, each giving the factory history of one article or process, he is able to determine the relative profitableness of different classes of work. This knowledge in turn enables him to determine the line of most profitable advance if he decides to extend his factory, or the most advantageous class of work to surrender to his competitors if there is no room for further expansion. It is not suggested that a good system of costing is a guarantee of profit. Success in business will depend upon the qualities of the manufacturer. “Business” is an art, not a science. No amount of scientific knowledge will compensate for the absence of the personal qualities necessary in industry. Nevertheless detailed and accurate information will serve as a valuable guide, and will give the business “instinct” far greater scope than it would otherwise enjoy. Elaborate accounts provide that information, and thus represent, within limits, economy rather than waste.Moreover, as one authority and pioneer states, they serve “as an undoubted moral check: a proper cost system is a silent, unseen power felt by every employee, a power he himself willingly or unwillingly puts and keeps in operation; it works alongside of him, and is automatic and inexorable.” This very power of checking results sometimes forms one of the obstacles in getting a cost system introduced. Managers and clerical staff who work away in rule-of-thumb fashion, guessing and approximating, charging too much here and too little there, dread the revelations which would result from the searchlight effect of a scientific record.Finally, cost accounting is an indispensable preliminary to estimating any scientific plan. Many manufacturers still underrate the importance of the function of the estimating clerk. Foolish price-cutting inevitably follows, and contracts which appear at first not unprofitable are ultimately found to be extremely unremunerative. It is assumed that during a period of depression, contracts which cover prime or direct costs are less unprofitable than idleness. Even when normal conditions are restored, the firm is apt to make wrong estimates of the additional costs of manufacture.Q. In this context ‘a searchlight effect’ woulda)reveal all the details of a businessb)reveal the lacunae in the businessc)leave no room for doubt in any businessd)indicate the implications of business dealsCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for DIRECTIONS for the question:Read the following passage and answer.It has long been customary to prepare a balance sheet for the financial year. This gives a bird’s eye view of the state of the firm at the end of that year. It provides a static view of the business. Comparison of the returns over a period of years provides information regarding the progress which is being made. And the dynamic view is more important for the purpose of estimating future prospects than the static.But in such accounts the unit is the Firm, or an establishment or department under the control of that firm, the unit with which the Firm itself works is the product which it makes and sells, and the balance sheet is built up from the series of transactions connected with that unit. The achievement of cost accountancy is to provide a continuous balance sheet for the product or process unit, and thereby to afford information of extreme value to the Firm.A good system of cost accounting serves many purposes. First it enables the manufacturer, by weekly examining one special card, to read the past history of the production of any article. He may compare costs at different times, or under different methods of manufacture, and so locate waste and inefficiency. By comparing a group of cards, each giving the factory history of one article or process, he is able to determine the relative profitableness of different classes of work. This knowledge in turn enables him to determine the line of most profitable advance if he decides to extend his factory, or the most advantageous class of work to surrender to his competitors if there is no room for further expansion. It is not suggested that a good system of costing is a guarantee of profit. Success in business will depend upon the qualities of the manufacturer. “Business” is an art, not a science. No amount of scientific knowledge will compensate for the absence of the personal qualities necessary in industry. Nevertheless detailed and accurate information will serve as a valuable guide, and will give the business “instinct” far greater scope than it would otherwise enjoy. Elaborate accounts provide that information, and thus represent, within limits, economy rather than waste.Moreover, as one authority and pioneer states, they serve “as an undoubted moral check: a proper cost system is a silent, unseen power felt by every employee, a power he himself willingly or unwillingly puts and keeps in operation; it works alongside of him, and is automatic and inexorable.” This very power of checking results sometimes forms one of the obstacles in getting a cost system introduced. Managers and clerical staff who work away in rule-of-thumb fashion, guessing and approximating, charging too much here and too little there, dread the revelations which would result from the searchlight effect of a scientific record.Finally, cost accounting is an indispensable preliminary to estimating any scientific plan. Many manufacturers still underrate the importance of the function of the estimating clerk. Foolish price-cutting inevitably follows, and contracts which appear at first not unprofitable are ultimately found to be extremely unremunerative. It is assumed that during a period of depression, contracts which cover prime or direct costs are less unprofitable than idleness. Even when normal conditions are restored, the firm is apt to make wrong estimates of the additional costs of manufacture.Q. In this context ‘a searchlight effect’ woulda)reveal all the details of a businessb)reveal the lacunae in the businessc)leave no room for doubt in any businessd)indicate the implications of business dealsCorrect answer is option 'B'. Can you explain this answer?.

Solutions for DIRECTIONS for the question:Read the following passage and answer.It has long been customary to prepare a balance sheet for the financial year. This gives a bird’s eye view of the state of the firm at the end of that year. It provides a static view of the business. Comparison of the returns over a period of years provides information regarding the progress which is being made. And the dynamic view is more important for the purpose of estimating future prospects than the static.But in such accounts the unit is the Firm, or an establishment or department under the control of that firm, the unit with which the Firm itself works is the product which it makes and sells, and the balance sheet is built up from the series of transactions connected with that unit. The achievement of cost accountancy is to provide a continuous balance sheet for the product or process unit, and thereby to afford information of extreme value to the Firm.A good system of cost accounting serves many purposes. First it enables the manufacturer, by weekly examining one special card, to read the past history of the production of any article. He may compare costs at different times, or under different methods of manufacture, and so locate waste and inefficiency. By comparing a group of cards, each giving the factory history of one article or process, he is able to determine the relative profitableness of different classes of work. This knowledge in turn enables him to determine the line of most profitable advance if he decides to extend his factory, or the most advantageous class of work to surrender to his competitors if there is no room for further expansion. It is not suggested that a good system of costing is a guarantee of profit. Success in business will depend upon the qualities of the manufacturer. “Business” is an art, not a science. No amount of scientific knowledge will compensate for the absence of the personal qualities necessary in industry. Nevertheless detailed and accurate information will serve as a valuable guide, and will give the business “instinct” far greater scope than it would otherwise enjoy. Elaborate accounts provide that information, and thus represent, within limits, economy rather than waste.Moreover, as one authority and pioneer states, they serve “as an undoubted moral check: a proper cost system is a silent, unseen power felt by every employee, a power he himself willingly or unwillingly puts and keeps in operation; it works alongside of him, and is automatic and inexorable.” This very power of checking results sometimes forms one of the obstacles in getting a cost system introduced. Managers and clerical staff who work away in rule-of-thumb fashion, guessing and approximating, charging too much here and too little there, dread the revelations which would result from the searchlight effect of a scientific record.Finally, cost accounting is an indispensable preliminary to estimating any scientific plan. Many manufacturers still underrate the importance of the function of the estimating clerk. Foolish price-cutting inevitably follows, and contracts which appear at first not unprofitable are ultimately found to be extremely unremunerative. It is assumed that during a period of depression, contracts which cover prime or direct costs are less unprofitable than idleness. Even when normal conditions are restored, the firm is apt to make wrong estimates of the additional costs of manufacture.Q. In this context ‘a searchlight effect’ woulda)reveal all the details of a businessb)reveal the lacunae in the businessc)leave no room for doubt in any businessd)indicate the implications of business dealsCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of DIRECTIONS for the question:Read the following passage and answer.It has long been customary to prepare a balance sheet for the financial year. This gives a bird’s eye view of the state of the firm at the end of that year. It provides a static view of the business. Comparison of the returns over a period of years provides information regarding the progress which is being made. And the dynamic view is more important for the purpose of estimating future prospects than the static.But in such accounts the unit is the Firm, or an establishment or department under the control of that firm, the unit with which the Firm itself works is the product which it makes and sells, and the balance sheet is built up from the series of transactions connected with that unit. The achievement of cost accountancy is to provide a continuous balance sheet for the product or process unit, and thereby to afford information of extreme value to the Firm.A good system of cost accounting serves many purposes. First it enables the manufacturer, by weekly examining one special card, to read the past history of the production of any article. He may compare costs at different times, or under different methods of manufacture, and so locate waste and inefficiency. By comparing a group of cards, each giving the factory history of one article or process, he is able to determine the relative profitableness of different classes of work. This knowledge in turn enables him to determine the line of most profitable advance if he decides to extend his factory, or the most advantageous class of work to surrender to his competitors if there is no room for further expansion. It is not suggested that a good system of costing is a guarantee of profit. Success in business will depend upon the qualities of the manufacturer. “Business” is an art, not a science. No amount of scientific knowledge will compensate for the absence of the personal qualities necessary in industry. Nevertheless detailed and accurate information will serve as a valuable guide, and will give the business “instinct” far greater scope than it would otherwise enjoy. Elaborate accounts provide that information, and thus represent, within limits, economy rather than waste.Moreover, as one authority and pioneer states, they serve “as an undoubted moral check: a proper cost system is a silent, unseen power felt by every employee, a power he himself willingly or unwillingly puts and keeps in operation; it works alongside of him, and is automatic and inexorable.” This very power of checking results sometimes forms one of the obstacles in getting a cost system introduced. Managers and clerical staff who work away in rule-of-thumb fashion, guessing and approximating, charging too much here and too little there, dread the revelations which would result from the searchlight effect of a scientific record.Finally, cost accounting is an indispensable preliminary to estimating any scientific plan. Many manufacturers still underrate the importance of the function of the estimating clerk. Foolish price-cutting inevitably follows, and contracts which appear at first not unprofitable are ultimately found to be extremely unremunerative. It is assumed that during a period of depression, contracts which cover prime or direct costs are less unprofitable than idleness. Even when normal conditions are restored, the firm is apt to make wrong estimates of the additional costs of manufacture.Q. In this context ‘a searchlight effect’ woulda)reveal all the details of a businessb)reveal the lacunae in the businessc)leave no room for doubt in any businessd)indicate the implications of business dealsCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of DIRECTIONS for the question:Read the following passage and answer.It has long been customary to prepare a balance sheet for the financial year. This gives a bird’s eye view of the state of the firm at the end of that year. It provides a static view of the business. Comparison of the returns over a period of years provides information regarding the progress which is being made. And the dynamic view is more important for the purpose of estimating future prospects than the static.But in such accounts the unit is the Firm, or an establishment or department under the control of that firm, the unit with which the Firm itself works is the product which it makes and sells, and the balance sheet is built up from the series of transactions connected with that unit. The achievement of cost accountancy is to provide a continuous balance sheet for the product or process unit, and thereby to afford information of extreme value to the Firm.A good system of cost accounting serves many purposes. First it enables the manufacturer, by weekly examining one special card, to read the past history of the production of any article. He may compare costs at different times, or under different methods of manufacture, and so locate waste and inefficiency. By comparing a group of cards, each giving the factory history of one article or process, he is able to determine the relative profitableness of different classes of work. This knowledge in turn enables him to determine the line of most profitable advance if he decides to extend his factory, or the most advantageous class of work to surrender to his competitors if there is no room for further expansion. It is not suggested that a good system of costing is a guarantee of profit. Success in business will depend upon the qualities of the manufacturer. “Business” is an art, not a science. No amount of scientific knowledge will compensate for the absence of the personal qualities necessary in industry. Nevertheless detailed and accurate information will serve as a valuable guide, and will give the business “instinct” far greater scope than it would otherwise enjoy. Elaborate accounts provide that information, and thus represent, within limits, economy rather than waste.Moreover, as one authority and pioneer states, they serve “as an undoubted moral check: a proper cost system is a silent, unseen power felt by every employee, a power he himself willingly or unwillingly puts and keeps in operation; it works alongside of him, and is automatic and inexorable.” This very power of checking results sometimes forms one of the obstacles in getting a cost system introduced. Managers and clerical staff who work away in rule-of-thumb fashion, guessing and approximating, charging too much here and too little there, dread the revelations which would result from the searchlight effect of a scientific record.Finally, cost accounting is an indispensable preliminary to estimating any scientific plan. Many manufacturers still underrate the importance of the function of the estimating clerk. Foolish price-cutting inevitably follows, and contracts which appear at first not unprofitable are ultimately found to be extremely unremunerative. It is assumed that during a period of depression, contracts which cover prime or direct costs are less unprofitable than idleness. Even when normal conditions are restored, the firm is apt to make wrong estimates of the additional costs of manufacture.Q. In this context ‘a searchlight effect’ woulda)reveal all the details of a businessb)reveal the lacunae in the businessc)leave no room for doubt in any businessd)indicate the implications of business dealsCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for DIRECTIONS for the question:Read the following passage and answer.It has long been customary to prepare a balance sheet for the financial year. This gives a bird’s eye view of the state of the firm at the end of that year. It provides a static view of the business. Comparison of the returns over a period of years provides information regarding the progress which is being made. And the dynamic view is more important for the purpose of estimating future prospects than the static.But in such accounts the unit is the Firm, or an establishment or department under the control of that firm, the unit with which the Firm itself works is the product which it makes and sells, and the balance sheet is built up from the series of transactions connected with that unit. The achievement of cost accountancy is to provide a continuous balance sheet for the product or process unit, and thereby to afford information of extreme value to the Firm.A good system of cost accounting serves many purposes. First it enables the manufacturer, by weekly examining one special card, to read the past history of the production of any article. He may compare costs at different times, or under different methods of manufacture, and so locate waste and inefficiency. By comparing a group of cards, each giving the factory history of one article or process, he is able to determine the relative profitableness of different classes of work. This knowledge in turn enables him to determine the line of most profitable advance if he decides to extend his factory, or the most advantageous class of work to surrender to his competitors if there is no room for further expansion. It is not suggested that a good system of costing is a guarantee of profit. Success in business will depend upon the qualities of the manufacturer. “Business” is an art, not a science. No amount of scientific knowledge will compensate for the absence of the personal qualities necessary in industry. Nevertheless detailed and accurate information will serve as a valuable guide, and will give the business “instinct” far greater scope than it would otherwise enjoy. Elaborate accounts provide that information, and thus represent, within limits, economy rather than waste.Moreover, as one authority and pioneer states, they serve “as an undoubted moral check: a proper cost system is a silent, unseen power felt by every employee, a power he himself willingly or unwillingly puts and keeps in operation; it works alongside of him, and is automatic and inexorable.” This very power of checking results sometimes forms one of the obstacles in getting a cost system introduced. Managers and clerical staff who work away in rule-of-thumb fashion, guessing and approximating, charging too much here and too little there, dread the revelations which would result from the searchlight effect of a scientific record.Finally, cost accounting is an indispensable preliminary to estimating any scientific plan. Many manufacturers still underrate the importance of the function of the estimating clerk. Foolish price-cutting inevitably follows, and contracts which appear at first not unprofitable are ultimately found to be extremely unremunerative. It is assumed that during a period of depression, contracts which cover prime or direct costs are less unprofitable than idleness. Even when normal conditions are restored, the firm is apt to make wrong estimates of the additional costs of manufacture.Q. In this context ‘a searchlight effect’ woulda)reveal all the details of a businessb)reveal the lacunae in the businessc)leave no room for doubt in any businessd)indicate the implications of business dealsCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of DIRECTIONS for the question:Read the following passage and answer.It has long been customary to prepare a balance sheet for the financial year. This gives a bird’s eye view of the state of the firm at the end of that year. It provides a static view of the business. Comparison of the returns over a period of years provides information regarding the progress which is being made. And the dynamic view is more important for the purpose of estimating future prospects than the static.But in such accounts the unit is the Firm, or an establishment or department under the control of that firm, the unit with which the Firm itself works is the product which it makes and sells, and the balance sheet is built up from the series of transactions connected with that unit. The achievement of cost accountancy is to provide a continuous balance sheet for the product or process unit, and thereby to afford information of extreme value to the Firm.A good system of cost accounting serves many purposes. First it enables the manufacturer, by weekly examining one special card, to read the past history of the production of any article. He may compare costs at different times, or under different methods of manufacture, and so locate waste and inefficiency. By comparing a group of cards, each giving the factory history of one article or process, he is able to determine the relative profitableness of different classes of work. This knowledge in turn enables him to determine the line of most profitable advance if he decides to extend his factory, or the most advantageous class of work to surrender to his competitors if there is no room for further expansion. It is not suggested that a good system of costing is a guarantee of profit. Success in business will depend upon the qualities of the manufacturer. “Business” is an art, not a science. No amount of scientific knowledge will compensate for the absence of the personal qualities necessary in industry. Nevertheless detailed and accurate information will serve as a valuable guide, and will give the business “instinct” far greater scope than it would otherwise enjoy. Elaborate accounts provide that information, and thus represent, within limits, economy rather than waste.Moreover, as one authority and pioneer states, they serve “as an undoubted moral check: a proper cost system is a silent, unseen power felt by every employee, a power he himself willingly or unwillingly puts and keeps in operation; it works alongside of him, and is automatic and inexorable.” This very power of checking results sometimes forms one of the obstacles in getting a cost system introduced. Managers and clerical staff who work away in rule-of-thumb fashion, guessing and approximating, charging too much here and too little there, dread the revelations which would result from the searchlight effect of a scientific record.Finally, cost accounting is an indispensable preliminary to estimating any scientific plan. Many manufacturers still underrate the importance of the function of the estimating clerk. Foolish price-cutting inevitably follows, and contracts which appear at first not unprofitable are ultimately found to be extremely unremunerative. It is assumed that during a period of depression, contracts which cover prime or direct costs are less unprofitable than idleness. Even when normal conditions are restored, the firm is apt to make wrong estimates of the additional costs of manufacture.Q. In this context ‘a searchlight effect’ woulda)reveal all the details of a businessb)reveal the lacunae in the businessc)leave no room for doubt in any businessd)indicate the implications of business dealsCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice DIRECTIONS for the question:Read the following passage and answer.It has long been customary to prepare a balance sheet for the financial year. This gives a bird’s eye view of the state of the firm at the end of that year. It provides a static view of the business. Comparison of the returns over a period of years provides information regarding the progress which is being made. And the dynamic view is more important for the purpose of estimating future prospects than the static.But in such accounts the unit is the Firm, or an establishment or department under the control of that firm, the unit with which the Firm itself works is the product which it makes and sells, and the balance sheet is built up from the series of transactions connected with that unit. The achievement of cost accountancy is to provide a continuous balance sheet for the product or process unit, and thereby to afford information of extreme value to the Firm.A good system of cost accounting serves many purposes. First it enables the manufacturer, by weekly examining one special card, to read the past history of the production of any article. He may compare costs at different times, or under different methods of manufacture, and so locate waste and inefficiency. By comparing a group of cards, each giving the factory history of one article or process, he is able to determine the relative profitableness of different classes of work. This knowledge in turn enables him to determine the line of most profitable advance if he decides to extend his factory, or the most advantageous class of work to surrender to his competitors if there is no room for further expansion. It is not suggested that a good system of costing is a guarantee of profit. Success in business will depend upon the qualities of the manufacturer. “Business” is an art, not a science. No amount of scientific knowledge will compensate for the absence of the personal qualities necessary in industry. Nevertheless detailed and accurate information will serve as a valuable guide, and will give the business “instinct” far greater scope than it would otherwise enjoy. Elaborate accounts provide that information, and thus represent, within limits, economy rather than waste.Moreover, as one authority and pioneer states, they serve “as an undoubted moral check: a proper cost system is a silent, unseen power felt by every employee, a power he himself willingly or unwillingly puts and keeps in operation; it works alongside of him, and is automatic and inexorable.” This very power of checking results sometimes forms one of the obstacles in getting a cost system introduced. Managers and clerical staff who work away in rule-of-thumb fashion, guessing and approximating, charging too much here and too little there, dread the revelations which would result from the searchlight effect of a scientific record.Finally, cost accounting is an indispensable preliminary to estimating any scientific plan. Many manufacturers still underrate the importance of the function of the estimating clerk. Foolish price-cutting inevitably follows, and contracts which appear at first not unprofitable are ultimately found to be extremely unremunerative. It is assumed that during a period of depression, contracts which cover prime or direct costs are less unprofitable than idleness. Even when normal conditions are restored, the firm is apt to make wrong estimates of the additional costs of manufacture.Q. In this context ‘a searchlight effect’ woulda)reveal all the details of a businessb)reveal the lacunae in the businessc)leave no room for doubt in any businessd)indicate the implications of business dealsCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CLAT tests.