Which of the Following Statements Is NOT True for Cost

question 27

Multiple Choice

Which of the following statements is NOT true for cost accounting?

• A)It is concerned with assigning costs to various cost objects.
• B)It attempts to satisfy the costing objectives of both financial accounting and management accounting.
• C)It provides cost information that supports planning,controlling,and decision making.
• D)It is primarily concerned with producing reports for external users.

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Definitions:

Income From Operations

Another term for operating income, representing profit from a company's regular business activities but excluding extraordinary items and expenses like taxes and interest.

Service Department Charges

Expenses allocated to the production or service departments, originating from support departments for costs incurred.

Operating Expenses

Costs associated with the normal operations of a business, excluding the costs of goods sold, such as rent, utilities, and payroll.

Total Service Department Charges

The collective costs charged by service departments within an organization for their services to other departments.