Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 2

Place the letter of the appropriate accounting cost in Column 2 in the blank next to each decision category in Column 1.

Column 1	??Column 2
Identifying the best performing subsidiary	A. Costs for inventory valuation
Determining whether to accept a special order	B. Costs for performance evaluation
Providing cost information for tax reporting	C. Costs for decision making

Step 1 of 4

Cost accounting

Cost accounting is an internal process or accounting maintain by managers which is customized as per requirement of management. Cost accounting is prepared so as to undertake various decision making related to cost, revenue for the business. Cost accounting should therefore involve data which would enhance the decision of the business.