The cost accounting function determines product costs, costs of goods sold, and inventory values for financial reporting purposes and management reporting. What is a sample control activity that could be used to control for a poorly designed cost accounting system which may result in misallocation of costs to products?
A) Document and authorize product cost accounting procedures that describe costing methods.
B) Use a BOM for every product in all steps of production.
C) Control and account for raw materials issued to production.
D) Ensure that system development is reviewed by appropriate IT and accounting staff.

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The Answer of The cost accounting function determines product costs, costs of goods sold, and inventory values for financial reporting purposes and management reporting. What is a sample control activity that could be used to control for a poorly designed cost accounting system which may result in misallocation of costs to products?
A) Document and authorize product cost accounting procedures that describe costing methods.
B) Use a BOM for every product in all steps of production.
C) Control and account for raw materials issued to production.
D) Ensure that system development is reviewed by appropriate IT and accounting staff.

The Cost Accounting Function Determines Product Costs, Costs of Goods