01 - Cost Accounting

Question 1

main concern of cost accounting

Answer 1

determination + allocation of costs

• to guide managers in decision making

Question 2

objectives of cost accounting

Answer 2

supply info for planning (eg. budgets)

determine + allocate costs

cost control + yield determination

performance measurement + evaluation

Question 3

two stages of cost accounting

Answer 3

1. cost accumulation

2. allocation of costs to various cost objects

Question 4

functions of cost accounting

Answer 4

scorekeeping

attention directing

problem solving

Question 5

main difference b/w P&L by functions and by nature

Answer 5

functions = included all industrial costs of products sold + non industrial costs of the period

nature = includes all costs incurred (including industrial costs of products not sold)