Podcast
Questions and Answers
What is the primary focus of cost management accounting?
What is the primary focus of cost management accounting?
- Minimizing value while reducing costs
- Maximizing profits without considering costs
- Maximizing costs to ensure quality
- Minimizing costs while maximizing value (correct)
Which cost management technique focuses on allocating indirect costs to products or services?
Which cost management technique focuses on allocating indirect costs to products or services?
- Activity-based costing
- Throughput costing
- Absorption costing (correct)
- Variable costing
What is the main purpose of cost management accounting in the context of decision-making?
What is the main purpose of cost management accounting in the context of decision-making?
- Maximizing the complexity of decision-making
- Impeding the decision-making process
- Minimizing the need for decision-making
- Providing relevant information for decision-making (correct)
What is the primary focus of cost management accounting?
What is the primary focus of cost management accounting?
Which cost behavior pattern is most challenging for cost management accounting?
Which cost behavior pattern is most challenging for cost management accounting?
What is the purpose of using activity-based costing (ABC) in cost management accounting?
What is the purpose of using activity-based costing (ABC) in cost management accounting?
Flashcards
Primary focus of cost management accounting?
Primary focus of cost management accounting?
Minimizing costs while maximizing value.
Absorption costing
Absorption costing
Allocating indirect costs to products or services.
Main purpose of cost management accounting?
Main purpose of cost management accounting?
Providing relevant information for decision-making.
Primary focus of cost management accounting?
Primary focus of cost management accounting?
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Mixed costs
Mixed costs
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Purpose of activity-based costing (ABC)?
Purpose of activity-based costing (ABC)?
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Study Notes
Cost Management Accounting
- The primary focus of cost management accounting is to provide accurate and relevant cost information to support managerial decision-making and achieve business objectives.
Cost Allocation Techniques
- The cost management technique that focuses on allocating indirect costs to products or services is Activity-Based Costing (ABC).
Decision-Making in Cost Management
- The main purpose of cost management accounting in the context of decision-making is to provide relevant cost information to support managerial decisions.
Cost Behavior Patterns
- The most challenging cost behavior pattern for cost management accounting is mixed costs, which have both fixed and variable components.
Activity-Based Costing (ABC)
- The purpose of using Activity-Based Costing (ABC) in cost management accounting is to allocate indirect costs to products or services based on the activities that drive those costs.
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