COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The primary users are the members of management.
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Reports are prepared whenever needed based on needs.
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All information is in monetary terms only (Ringgit Malaysia).
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The focus is on specific area in the company, such as materials.
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Detailed explanation-1: -Characteristic Features of Cost Accounting It is a branch of accounting involving the cost of goods and services. Management is able to analyze the data which helps in decision-making and budgeting for the future. The data achieved is used in financial accounting.
Detailed explanation-2: -Cost Accounting is a branch of accounting that deals specifically with the determination of costs of the products and services being manufactured. It deals with those techniques, tools, processes and methods which are associated with the determination of costs, their classification and analysis.
Detailed explanation-3: -Cost accounting concepts include all the following except profit sharing. Cost accounting is an accounting method that aims to capture a company’s costs of production by assessing the input costs of each step of production as well as fixed costs, such as depreciation of capital equipment.