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

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Definitions:

Scrap Value

The projected amount an asset is expected to generate when it is sold after reaching the end of its lifespan.

Double-Declining-Balance

A method of accelerated depreciation which doubles the rate of straight line depreciation, expensing more of the asset's value in the early years of its life.

Scrap Value

The anticipated market value of an asset at the end of its operational lifetime.

Sum-Of-The-Years-Digits

A depreciation method that results in a more accelerated write-off of the asset, calculated by adding together the digits of the asset's useful life years.