Companies need service and product cost information for both financial reporting and managerial accounting.

Question

Quizplus · Accepted Answer

Both financial reporting and managerial accounting require companies to understand their service and product costs in order to make informed decisions and accurately report financial information. Financial reporting focuses on providing accurate information to external stakeholders, such as shareholders and regulatory agencies, while managerial accounting provides information for internal decision-making and controlling costs. In both cases, understanding and analyzing costs is essential.

Companies Need Service and Product Cost Information for Both Financial