Which of the Following Is the Best Reason Why Cost

question 92

Multiple Choice

Which of the following is the best reason why cost accounting information does not need to be comparable to similar information in other organizations?

• A) Because it is only used by investors and creditors.
• B) Because no publicly traded companies use cost accounting.
• C) Because IFRS and cost accounting are converging which eliminates the need for comparability.
• D) Because managers that use this information are making decisions only for their organization.

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Definitions:

Overhead Cost Per Unit

The allocation of total fixed and variable manufacturing overhead costs to individual units of product.

Product F

A specific item or good produced by a company, referred to as "Product F" for identification or category purposes.

Activity Rates

These are the costs assigned to work based on the activities required to complete a job or task.

Batches

Groups of items or goods processed or produced together within a specified time frame in manufacturing or production.