COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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to record day-to-day transactions of the business
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to reveal managerial efficiency
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to ascertain true cost of products and services
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to determine tender price
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Detailed explanation-1: -cost of products and services may be accurately ascertained. Thus, the following are the main objectives of cost accounting: Ascertainment of the cost per unit of the different products that a business concern manufacturers. To correctly analyze the cost of both the process and operations.
Detailed explanation-2: -Cost accounting seeks to ascertain the cost of each product or job produced or undertaken by the business.
Detailed explanation-3: -Cost ascertainment is the process of determining costs on the basis of actual data. Hence, the computation of historical cost is cost ascertainment while the computation of future costs is cost estimation. Both cost estimation and cost ascertainment are interrelated and are of immense use to the management.
Detailed explanation-4: -Solution(By Examveda Team) Assisting Shareholders in decision making is not an objective of Cost Accounting.