An accounting system that accumulates and reports costs incurred by each service department for management to evaluate the performance of a department is a:
A)Departmental accounting system.
B)Cost accounting system.
C)Service accounting system.
D)Revenue accounting system.
E)Standard accounting system.

Question

Quizplus · Accepted Answer

A departmental accounting system is designed to report costs incurred by each service department to evaluate the performance of that department. It involves accumulating costs by department and then assigning those costs to the products or services produced by that department. This helps to determine the profitability of each department and aid in making management decisions. The other options (B) Cost accounting system, (C) Service accounting system, (D) Revenue accounting system, and (E) Standard accounting system are not specific to the function described in the question.

An Accounting System That Accumulates and Reports Costs Incurred by Each