The part of the accounting system that measures costs for the purposes of management decision making and financial reporting is referred to as
A) period costing.
B) cost accounting.
C) system accounting.
D) product costing.

Question

Quizplus · Accepted Answer

Cost accounting is the part of the accounting system that focuses on measuring and analyzing costs for management decision making and financial reporting purposes. Period costing refers to the practice of allocating costs to specific periods, while product costing specifically looks at the costs associated with producing a specific product. System accounting is not a common term used in accounting.

The Part of the Accounting System That Measures Costs for the Purposes