Cost Accounting Systems Are Used ________

question 152

Multiple Choice

Cost accounting systems are used ________.

• A) to accumulate product cost information
• B) to accumulate and assign period costs to products
• C) by manufacturing companies, not service companies
• D) by stockholders for decision-making purposes

---

Definitions:

Sales

Deals involving the swapping of products or services for monetary value, which constitute the main income stream for numerous companies.

Forecasting

The process of making predictions about future events or trends based on historical data and analysis, commonly used in finance and operations planning.

Activity-Based Budgeting

A budgeting approach where budgets are created based on activities and processes, taking into consideration the costs of all activities necessary to produce and sell a product.

Budget System

A systematic process used by businesses and organizations for planning, controlling, and allocating financial resources.