Which of the following is true of cost accounting?
A) It provides financial information about cash-based transactions only.
B) It accounts only the financial information of business transactions, not the nonfinancial information.
C) It provides financial information regarding the cost of acquiring resources.
D) It must be prepared in accordance with GAAP.

Question

Quizplus · Accepted Answer

Cost accounting provides financial information about the cost of acquiring resources, such as materials, labor, and overhead. It focuses on determining and analyzing product costs in order to assist in decision making and improving profitability.

Option A is incorrect because cost accounting includes both cash and non-cash transactions.
Option B is incorrect because cost accounting includes both financial and nonfinancial information.
Option D is incorrect because cost accounting does not need to follow GAAP, but it should be consistent with managerial needs and objectives.

Which of the Following Is True of Cost Accounting