COST ACCOUNTING
INFORMATION FOR DECISION MAKING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is not a reason for the performance evaluation model to differ from the decision model?
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The use of different time frames:one being an annual basis, the other a period of several years.
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The accounting systems enable each decision to be tracked separately.
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The accrual accounting method incorporates irrelevant costs.
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Top management is rarely aware of particular desirable alternatives that were not chosen by subordinate managers
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Explanation:
Detailed explanation-1: -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-2: -Cost accounting provides data for periodical income statements and balance sheets, and actual figures to compare with estimates for different periods. Analysing this information helps business managers with effective decision-making.
There is 1 question to complete.