Cost accounting standards
A)are legal standards set by the Institute of Management Accountants for use in all manufacturing and professional businesses.
B)are set by the Cost Accounting Standards Board and are legally binding on all manufacturers,but not service organizations.
C)do not exist except for those legal pronouncements for companies bidding or pricing cost-related contracts with the government.
D)are developed by the Cost Accounting Standards Board,issued by the Institute of Management Accountants,and are legally binding on CMAs.

Question

Quizplus · Accepted Answer

Cost accounting standards primarily exist in the context of government contracts, where specific guidelines must be followed by companies bidding on or pricing these contracts. The other options incorrectly attribute the setting or legal binding of these standards to various organizations or imply a broader applicability than is accurate.