Question

What is the primary purpose of Cost Accounting?

• A. To prepare financial statements for outside stakeholders
• B. To ascertain the cost of products, operations, or processes and help in cost control
• C. To analyze market trends
• D. To manage employee performance

Answer 1

Answer:

B. To ascertain the cost of products, operations, or processes and help in cost control

COST ACCOUNTING:

• The branches of accounting is concerned with ascertaining cost of products, operations, process etc.

• The purpose of cost accounting is to analyse the expenditure so as to ascertain the cost of various products manufactured by the firm and fixes the prices.

• It also helps in controlling the costs and providing necessary costing information to management for decision making.