How is cost,as used in managerial accounting,distinguished from expense,as used in financial accounting?
A)A cost is a sacrifice of resources and expenses are recorded in accounting records,but not all costs appear in accounting records.
B)All expenses are costs,but not all costs are expenses in the period of incurrence,even though they will become expenses in some later period.
C)Managerial accounting deals primarily with costs,not expenses,while financial accounting primarily deals with expenses for financial reporting as defined by generally accepted accounting principles.
D)All of the answers are correct.

Question

Quizplus · Accepted Answer

All the statements correctly distinguish between cost and expense in the context of managerial and financial accounting. A) highlights the recording difference, B) emphasizes the timing difference, and C) points out the focus difference between managerial and financial accounting.

How Is Cost,as Used in Managerial Accounting,distinguished from Expense,as Used