Which one of the following is a major purpose of cost accounting?

Question

Quizplus · Accepted Answer

Cost accounting's major purpose is to measure, record, and report product costs, which is critical for the effective management of costs and decision making. While classifications of costs and allocation of overhead costs are important aspects of cost accounting, they are secondary to the primary purpose of determining product costs. Gross profit rates may be calculated based on product costs, but this is not the main purpose of cost accounting.

Which One of the Following Is a Major Purpose of Cost