COST ACCOUNTING
COST ACCOUNTING STANDARDS
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Question
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GAAP (Generally accepted accounting principles)
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The rules adopted by the accounting profession that make up acceptable accounting practices for the preparation of financial statements.
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Employees within organizations who assess whether managers are following established operating procedures and evaluate the efficiency of operating procedures.
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Explanation:
Detailed explanation-1: -Generally accepted accounting principles, or GAAP, are standards that encompass the details, complexities, and legalities of business and corporate accounting. The Financial Accounting Standards Board (FASB) uses GAAP as the foundation for its comprehensive set of approved accounting methods and practices.
Detailed explanation-2: -GAAP helps govern the world of accounting according to general rules and guidelines. It attempts to standardize and regulate the definitions, assumptions, and methods used in accounting across all industries. GAAP covers such topics as revenue recognition, balance sheet classification, and materiality.
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