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

Question

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The major purpose of cost accounting is to measure, record, and report product costs, which includes direct materials, direct labor, and manufacturing overhead. This information is used by managers to make decisions about pricing, product mix, and cost control. While allocating overhead costs to jobs (B) and classifying costs as direct or indirect (C) are important aspects of cost accounting, they are not the primary purpose. Providing gross profit rates to managers (A) is a result of cost accounting, but not its major purpose.

Which One of the Following Is a Major Purpose of Cost