Cost Accounting Is That Part of the Accounting System That

question 98

True/False

Cost accounting is that part of the accounting system that measures costs for the purposes of management decision making and financial reporting.

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Definitions:

Interest Rate

The cost, represented as a percentage of the principal, incurred by a borrower for the utilization of assets from a lender.

ROE

Return on Equity, a measure of a corporation's profitability by calculating how much profit a company generates with the money shareholders have invested.

Real Income

The purchasing power of an individual's or household's income, accounting for inflation.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.