Question

Which of the following is TRUE about cost accounting?

Answers:	a. Cost accounting is governed by a strict set of reporting rules that sometimes deviate from economic reality.
	b. Rather than make decisions based on cost accounting information, managers usually prefer to make decisions based on the financial reports the company prepares for external parties because such external reports are more forward-looking.
	c. Cost accountants are often punished by governmental authorities when they do not perform cost accounting tasks correctly.
	d. Cost accounting is NOT bound by a prescribed way of doing things in the way that financial accounting, tax, or audit are.

Answer 1

ANSWER :( d) Cost accounting is NOT bound by a prescribed way of doing things in the way that financial accounting ,tax ,or audit are .

explanation :

1. cost accounting is the process of identifying and classifying ,analyzing different costs and expenses for purchase or produce something

2. cost accounting objective is to find out the cost per unit or product

3. it is more useful to the managers for taking decisions internally

4) cost accounting do not follow a particular rules and procedures like financial accounting

5. it do not follow the Generally accepted accounting principles for preparing reports

6. cost accounting is helpful for preparing various budgets like sales ,production ,overhead and labor and cash budgets .

7. it is not bound by a prescribed way of doing things like financial accounting

answered by: anonymous