Cost accounting information is used for:
A) Financial reporting only
B) Management reporting only
C) Both financial and management reporting
D) Neither financial nor management reporting

Question

Quizplus · Accepted Answer

Cost accounting information is used for both financial and management reporting purposes. It provides management with information on the costs of products or services, which enables the organization to make informed decisions relating to pricing, profitability, and budgeting. Additionally, this information is used in financial reporting to determine the cost of goods sold and to calculate the gross margin. Therefore, cost accounting information is important for both financial and management reporting.

Cost Accounting Information Is Used For