Which of These Is a Defence of Current Cost Accounting

question 12

Multiple Choice

Which of these is a defence of current cost accounting?

• A)It specifically recognises future technological changes in profit determination.
• B)It is the most objective of the proposed accounting methods.
• C)Relevant current events of the accounting period should be accounted for to maintain the usefulness of accounting information for decision-making.
• D)All of the above are defences.

Differentiate between fixed, variable, and mixed costs and calculate each based on given data.

Identify and classify costs as direct or indirect in different contexts, including manufacturing and departmental accounting.

Compute total variable, fixed, and mixed costs at different levels of activity.

Apply cost-volume-profit analysis for decision-making.

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Definitions:

Maslow

Refers to Abraham Maslow, an American psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Need

A requirement essential for an organism's survival, growth, and well-being.

Self-actualization

A concept in psychology representing the realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Maslow

Abraham Maslow was an American psychologist who created the hierarchy of needs, a theory in psychology proposing that human actions are motivated by the fulfilment of needs ranging from the most basic physiological to self-actualization.