Which of the following statements is true?
A) The word cost has the same meaning in all situations in which it is used.
B) Cost data, once classified and recorded, can be used for any purpose.
C) Different cost concepts and classifications are used for different purposes.
D) None of the given answers

Question

Quizplus · Accepted Answer

Different cost concepts and classifications are used for different purposes. Cost data can be classified and recorded differently depending on the purpose for which it is being used, such as for pricing decisions, budgeting, or financial reporting. Therefore, it is important to understand the context in which cost information is being used to properly interpret its meaning and implications. Option A is incorrect because the meaning of cost may vary based on the context of its use. Option B is incorrect because cost data may need to be adjusted or reclassified for specific purposes. Option D is incorrect because there is a true statement among the options.

Which of the Following Statements Is True