Assigning costs accurately to cost objects is of low priority. Accuracy is not evaluated based on knowledge of some underlying "true cost".

Question

Quizplus · Accepted Answer

Assigning costs accurately to cost objects is a high priority in cost accounting. Accurate costing is necessary for decision-making, budgeting, and cost control. The goal is to determine an as-close-as-possible measure of the actual cost of producing a product or providing a service.

Assigning Costs Accurately to Cost Objects Is of Low Priority