COST ACCOUNTING
COST MANAGEMENT SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A cost organization can use secondary books to perform Cost Accounting for different purposes such as currencies, regulatory reporting, or management reporting.
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A cost organization has one book that posts to the primary ledger.
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Every cost organization must use different book names; they cannot be shared.
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Secondary books can post accounting entries into any ledger, including the primary ledger or any secondary ledger.
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Detailed explanation-1: -Which of the following is true of cost accounting? It is part of both management and financial accounting systems.
Detailed explanation-2: -The main objective of cost accounting are ascertainment of cost, fixation of selling price, proper recording and presentation of cost data to management for measuring efficiency and for cost control and cost reduction, ascertaining the profit of each activity, assisting management in decision making process.
Detailed explanation-3: -Types of cost accounting include standard costing, activity-based costing, lean accounting, and marginal costing.
Detailed explanation-4: -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.