Cost Accounting BasicsMCQQuestion 5816 of 6
All Questions

Which of the following is a characteristic of cost accounting?

Options

AFocus on financial reporting
BFocus on cost control and reduction
CPrimary focus on taxation
DPrimarily used for external reporting
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option B — Focus on cost control and reduction

All Options:

  • AFocus on financial reporting
  • BFocus on cost control and reduction ✓
  • CPrimary focus on taxation
  • DPrimarily used for external reporting

Ad

Detailed Solution & Explanation

Cost accounting is a method of accounting that aims to capture a company's cost of production by assessing the input costs of a given product or service. It helps management make informed decisions by providing detailed information about the costs associated with producing goods or services.
This solution has been verified by multiple AI reviewers for accuracy.

More Questions from Cost Accounting Basics

What is the purpose of a cost accounting system?

Which of the following costs is considered a direct cost?

Explain the difference between cost accounting and financial accounting. How do the two disciplines differ in terms of their purpose, scope, and user groups?

Discuss the importance of cost control in a business organization. What strategies can be employed to achieve effective cost control?

What are the different types of costs that a business organization may incur? Explain the characteristics of each type of cost and provide examples.

Ready to Master Cost Accounting Basics?

Practice all 6 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free