Cost Accounting Systems Were Originally Developed To

question 42

Multiple Choice

Cost accounting systems were originally developed to:

• A) Assign costs to products for financial reporting purposes
• B) Assign costs to products for tax reporting purposes
• C) Give managers better information for making decisions
• D) Allocate direct costs to cost objects

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Definitions:

Lower Prices

A strategy or condition where goods or services are offered for sale at reduced costs.

Bargaining Power of Suppliers

The ability of suppliers to influence the terms and conditions of the materials and goods they supply, affecting the buying company's costs and quality of inputs.

Degree of Rivalry

The intensity of competition among firms within the same industry or market.

Bargaining Power of Buyers

The ability of buyers to influence the price and terms of purchase due to their leverage over sellers.