Questions and Answers
What is the primary function of cost accounting?
To provide detailed cost information for managerial decision-making
Which of the following is a key goal of cost accounting?
Advising management on optimizing business practices
What does cost accounting provide to management?
Detailed cost information for controlling current operations and planning for the future
How is cost accounting related to financial accounting?
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What is the end goal of cost accounting?
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Study Notes
Cost Accounting Overview
- Primary function of cost accounting: to determine the cost of products or services and provide a basis for managerial decisions
Goals of Cost Accounting
- Key goal: to provide accurate and timely cost information to support managerial decision-making
Cost Accounting and Management
- Provides management with cost information to make informed decisions on pricing, budgeting, and performance evaluation
Relationship with Financial Accounting
- Cost accounting is closely related to financial accounting, but focuses on internal reporting for managerial decisions, whereas financial accounting focuses on external reporting for stakeholders
End Goal of Cost Accounting
- Ultimate goal: to enhance profitability and competitiveness by optimizing costs and improving operational efficiency
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