![Managerial Accounting: Tools for Business Decision Making](https://www.bartleby.com/isbn_cover_images/9781118334331/9781118334331_largeCoverImage.gif)
(a) Mary Barett is not sure about the difference between cost accounting and a cost accounting system. Explain the difference to Mary.
(b) What is an important feature of a cost accounting system?
(a)
![Check Mark](/static/check-mark.png)
Cost accounting:
Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.
To determine: The difference between cost accounting and a cost accounting system.
Explanation of Solution
The difference between cost accounting and a cost accounting system is explained as below.
Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.
Cost accounting system is a branch of managerial accounting that is concerned with the accumulation of all the costs that have been incurred in the production of a product and the using such information for decision making purposes.
Hence, the difference between cost accounting and a cost accounting system is explained as above.
(b)
![Check Mark](/static/check-mark.png)
Cost accounting:
Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.
To determine: The important feature of a cost accounting system.
Explanation of Solution
The most important and the most crucial feature of the system is the use of perpetual inventory system. Perpetual inventory system is the system that records the sale as well as the purchase of inventory in the near real time. The system provides the highest details on the changes that are made in the inventory.
Hence, the most important feature of a cost accounting system is stated as above.
Want to see more full solutions like this?
Chapter 2 Solutions
Managerial Accounting: Tools for Business Decision Making
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters (6th Edition)
Cost Accounting (15th Edition)
Financial Accounting: Tools for Business Decision Making, 8th Edition
Horngren's Accounting (12th Edition)
Financial Accounting
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
- Cost Accounting don’t disclosure the information? True Flasearrow_forwardWhich of the following is one of the difference between management accounting and cost accounting. Select one: O a. Management accounting is based on double entry system but not cost accounting b. Management accounting used for decision making but cost accounting used for cost ascertainment O c. Management accounting is limited for internal use whereas cost accounting for external use d. Management accounting is optional but cost accounting is mandatoryarrow_forwardCost accountingarrow_forward
- 22. Which of the following is not a function of Cost Accounting? a. Control cost b. Reporting to owners c. Helps Planning and control d. Cost ascertainment;arrow_forward“Management accounting deals only with costs.” Do you agree? Explain?arrow_forwardWhich of the following statements regarding activity-based costing (ABC) is false? A. ABC is not an appropriate tool for analysing non-manufacturing costs. B. ABC can be used to analyse the profitability of customers. C. ABC evolved as a response to problems with traditional costing systems. D. ABC can be used to measure the cost of cost objects.arrow_forward
- True or False Cost and managerial accounting are not the same thingsarrow_forwardWhat Are features and differences between cost accounting and management accounting?arrow_forwardQ2) Cost assignment and cost accumulation are the two cost accounting system processes that helps managers to make decisions. Select one: True Falsearrow_forward
- Cost accounting is an area of accounting concerned with cost determination, cost control and cost analysis. Which of the following is a description of cost control? a. Refers to the use of cost data by management in decision making. b. None of the above c.Refers to the comparison of standards set for costs per unit and with the figures per actual operations so that remedial measures may be adopted if needed. d.Refers to the accumulation of cost data by products, process or services to be able to arrive at a unit cost.arrow_forwardWhich of the following costs would not be inventoriable? Indirect labor cost Office rent factory insurance costarrow_forwardWhat is the definition of cost? Please explain it clearly and don't plagiarized, thank youarrow_forward
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)