BUSINESS ADMINISTRATION
ACCOUNTING FOR MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ascertainment of cost
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Planning and controlling cost
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Decision making
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Investing
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Detailed explanation-1: -Cost accounting is a form of managerial accounting that aims to capture a company’s total cost of production by assessing its variable and fixed costs. Accounting is the process of recording, summarizing, and reporting financial transactions to oversight agencies, regulators, and the IRS.
Detailed explanation-2: -Cost and management accounting is a form of accounting that aims to maximise profit by managing revenues and expenses. It provides data and reports used by managers to inform their strategies around long-term profit and growth.
Detailed explanation-3: -Solution(By Examveda Team) Assisting Shareholders in decision making is not an objective of Cost Accounting.
Detailed explanation-4: -What is the main objective of management accounting? To identify and analyse the result of business operations.
Detailed explanation-5: -Cost accounting helps companies identify areas where they may be able to better control their costs, and also informs pricing decisions to ensure profitability. Cost accounting figures are used only by a company’s internal management team, so collection methods can be customized according to company needs.