Which of the following statements is correct?
A) Management accounting is a subset of cost accounting.
B) Cost accounting is a subset of management accounting.
C) Cost accounting is no longer required in today's competitive environment.
D) Management accounting in today's environment is the same as it was many years ago.

Question

Quizplus · Accepted Answer

Management accounting encompasses a broader range of activities such as budgeting, performance measurement, and decision-making. Cost accounting is a subset of management accounting, focusing primarily on calculating and controlling costs. Therefore, option B is correct. Option A is incorrect because management accounting is a broader field than cost accounting. Option C is incorrect because cost accounting is still important in today's competitive environment for managing costs and improving profitability. Option D is incorrect because management accounting has evolved with changes in technology, globalization, and increased competition.

Which of the Following Statements Is Correct