An effective cost system has which of the following characteristic(s)?

Question

Quizplus · Accepted Answer

An effective cost system should possess all of these characteristics. It should be decision-focused, meaning that it should provide information that helps decision-makers make informed choices. Different costs should be captured for different purposes, such as product costing, pricing, and performance measurement. There should also be a cost-benefit test to ensure that the benefits of the cost system outweigh its costs.

An Effective Cost System Has Which of the Following Characteristic(s)