Which one of the following statements is not true?
A) The cost accounting system is just an extension of the financial accounting system.
B) Cost and management accounting reports have both an internal and an external focus.
C) Financial accounting reports present internal information to external parties.
D) Internal financial costs are the only information that entities require to set the selling prices of products and services.

Question

Quizplus · Accepted Answer

Cost and management accounting systems provide information for internal decision-making, including setting selling prices, which involves more than just internal financial costs. Factors such as market conditions, competitor pricing, and customer demand also influence pricing decisions, making statement D incorrect.

Which One of the Following Statements Is Not True