In comparison to a general accounting system,a cost accounting system for a manufacturing company places an emphasis on:
A)Periodic inventory counts.
B)Total costs.
C)Continually updating costs of materials,work in process,and finished goods inventories.
D)Products and average costs.
E)Large volume operations involving standardized products.

Question

Quizplus · Accepted Answer

A cost accounting system for a manufacturing company requires continually updating costs of materials, work in process, and finished goods inventories to accurately determine the cost of goods sold and to make pricing decisions. Periodic inventory counts (A) are also important, but they are not the primary emphasis of a cost accounting system. Total costs (B) and average costs (D) are important components of cost accounting, but they are not specific to a manufacturing company. Large volume operations involving standardized products (E) may be a characteristic of a manufacturing company, but it is not directly related to the emphasis of a cost accounting system.

In Comparison to a General Accounting System,a Cost Accounting System