Which of the following is one of the components of cost accounting?
A) It involves measuring product costs.
B) It involves the determination of company profits.
C) It requires GAAP to be applied.
D) It requires cost minimizing principles.

Question

Quizplus · Accepted Answer

One of the main components of cost accounting is measuring product costs, which involves determining the costs associated with producing a particular product or service. This can include direct costs (such as materials and labor) as well as indirect costs (such as overhead expenses). Cost accounting helps companies understand their cost structure and make informed decisions about pricing, production, and overall profitability. While cost minimizing principles may be important considerations in cost accounting, they are not necessarily a component of the discipline itself. Additionally, while GAAP (generally accepted accounting principles) may be applied in cost accounting, this is not a core component of the field. Finally, while cost accounting can provide insight into company profits, this is not its primary focus.

Which of the Following Is One of the Components of Cost