A Major Purpose of a Cost Accounting System Is to

question 112

Multiple Choice

A major purpose of a cost accounting system is to

• A) compute the cost of goods sold for the income statement.
• B) classify all costs as operating or marketing costs.
• C) assist creditors in determining whether to grant a loan.
• D) show investors a company is operating efficiently.

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Definitions:

Communist Systems

Political and economic systems in which property and resources are commonly owned, aiming to eliminate social classes and promote equality.

Conduct Research

The systematic investigation into and study of materials and sources in order to establish facts and reach new conclusions, typically used to gain a deeper understanding of a topic or to solve a problem.