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Question

The main objective of cost accounting is ________

A Recording the business expenses and revenues Correct Answer Incorrect Answer
B Ascertaining the true cost of products and services Correct Answer Incorrect Answer
C Determining the managerial efficiency Correct Answer Incorrect Answer
D Recording the business transactions on day-to-day basis Correct Answer Incorrect Answer
E All of the above Correct Answer Incorrect Answer

Solution

Cost accounting is the classifying, recording and appropriate allocation of expenditure for the determination of the costs of products or services, and for the presentation of suitably arranged data for purposes of control and guidance of management. Objectives of cost accounting are ascertainment of cost, fixation of selling price, proper recording and presentation of cost data to management for measuring efficiency and for cost control and cost reduction, ascertaining the profit of each activity, assisting management in decision making and determination of break-even point.

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