The type of cost accounting system best suited to a particular company depends on:
A)The nature of the company's manufacturing operations.
B)The requirements set forth by the FASB.
C)Government regulations.
D)The type of cost drivers available.

Question

Quizplus · Accepted Answer

The nature of the company's manufacturing operations will dictate which cost accounting system is best suited to capture and allocate costs accurately. For example, a job costing system may be best suited for a company that produces custom-made or one-of-a-kind products, whereas a process costing system may be best suited for a company that produces large quantities of identical products. Factors such as production process, product variability, and complexity will all impact the choice of cost accounting system.

The Type of Cost Accounting System Best Suited to a Particular