Trends in Cost Management/cost Accounting Include All of the Following

question 103

Multiple Choice

Trends in cost management/cost accounting include all of the following except:

• A) reductions in the administrative costs of gathering data
• B) a trend toward job order cost systems and away from process cost systems
• C) adding a fourth cost category called direct technology
• D) reduction in the direct labor cost component

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Definitions:

Common-Size Income Statement

A financial statement that presents all items as percentages of a common base figure, such as total sales, facilitating comparison across periods or companies.

Net Sales

The revenue from sales of goods or services after deducting returns, allowances for damaged or missing goods, and discounts.

Vertical Analysis

A financial analysis method that lists each item in a financial statement as a percentage of a base figure, facilitating comparisons across different periods or companies.

Base Item

A reference or standard item used for comparison purposes in financial and economic analysis.