A cost management system should provide the means to develop
A)the most accurate product or service costs.
B)a reasonably accurate product or service cost given cost-benefit analysis.
C)a product or service cost that does not include any non-value-added overhead.
D)a costing system that traces all costs directly to individual products or services.

Question

Quizplus · Accepted Answer

A cost management system should aim for reasonably accurate costs that balance accuracy with the cost of obtaining that information, as per cost-benefit analysis.

A Cost Management System Should Provide the Means to Develop