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

---

Definitions:

Percentage of Net Sales

A financial ratio that represents certain expenses, liabilities, or profits as a percentage of the net sales, used to analyze the financial health and performance of a business.

Bad Debts

Amounts owed to a company that are considered uncollectible, typically due to the debtor's inability to pay.

Factoring Commissions

Factoring commissions are fees paid to a factor, or financial intermediary, for advancing funds to a business by purchasing its accounts receivable.

Accounts Receivable

Amounts owed to a business by its customers for goods or services delivered or used but not yet paid for.