A principal objective of cost accounting systems is to ensure that cost reports to management are prepared in accordance with generally accepted accounting principles.

Question

Quizplus · Accepted Answer

While cost accounting systems do aim to provide accurate and relevant cost information to management, their main objective is to help businesses control and reduce costs, improve efficiency, and make informed business decisions. Adhering to GAAP may be important for financial reporting purposes, but it is not the primary objective of cost accounting.

A Principal Objective of Cost Accounting Systems Is to Ensure