Modern cost accounting takes the perspective that collecting cost information is a function of the management decisions being made.

Question

Quizplus · Accepted Answer

Modern cost accounting recognizes that cost information is no longer collected merely for financial reporting purposes, but is also used to support management decisions related to pricing, product mix, process improvement, and budgeting. Therefore, the collection, analysis, and reporting of cost data should align with the specific needs of management.

Modern Cost Accounting Takes the Perspective That Collecting Cost Information