In comparison to a general accounting system for a manufacturing company,a cost accounting system places an emphasis on:
A) Periodic inventory counts.
B) Total costs.
C) Unit costs and cost control.
D) Products and average costs.
E) Large volume operations involving standardized products.

Question

Quizplus · Accepted Answer

A cost accounting system places an emphasis on unit costs and cost control. This is because the system is designed to help the manufacturing company accurately calculate the cost of producing each unit of product, and then use that information to improve cost efficiency and make informed pricing decisions. Periodic inventory counts (A) are important in both general accounting and cost accounting, but they are not the main focus of a cost accounting system. Total costs (B) are important to track overall financial performance, but again, a cost accounting system is more concerned with the cost of each individual unit produced. Products and average costs (D) are relevant to both general accounting and cost accounting, but do not necessarily imply a focus on cost control. Large volume operations involving standardized products (E) may benefit from a cost accounting system, but it is not a defining characteristic of such a system.

In Comparison to a General Accounting System for a Manufacturing