Which of the Following Differentiates Cost Accounting and Financial Accounting

question 58

Multiple Choice

Which of the following differentiates cost accounting and financial accounting?

• A) The primary users of cost accounting are the investors, whereas the primary users of financial accounting are the managers.
• B) Cost accounting deals with product design, production, and marketing strategies, whereas financial accounting deals mainly with pricing of the products.
• C) Cost accounting measures only the financial information related to the costs of acquiring fixed assets in an organization, whereas financial accounting measures financial and nonfinancial information of a company's business transactions.
• D) Cost accounting measures information related to the costs of acquiring or using resources in an organization, whereas financial accounting measures a financial position of a company to investors, banks, and external parties.

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Definitions:

Cash

Money in the form of coins or banknotes, especially that issued by a government.

Common Courtesies

Basic polite behaviors and gestures that are universally accepted and expected within a society.

Positive Reinforcement

A behavioral principle where the introduction of a stimulus following a desired behavior increases the likelihood of the behavior recurring.

Monetary Rewards

Financial incentives given to employees or individuals as a recognition of their work, achievement, or performance.