Which basis of accounting best contributes to measuring the cost of services for rational budgeting purposes?

Question

Quizplus · Accepted Answer

Accrual basis of accounting recognizes revenue when it is earned and expenses when they are incurred. This ensures that all relevant costs are captured, including costs that may not have been paid for yet. This basis of accounting is therefore better suited for measuring the true cost of services, which is important for rational budgeting purposes.

Which Basis of Accounting Best Contributes to Measuring the Cost