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CSEET · Fundamentals of Accounting · Basic Concepts and Principles of Accounting

Which branch of accounting is mainly concerned with ascertaining the cost of producing a product or service and helping management control that cost?

Cost accounting is the branch concerned with ascertaining and controlling the cost of producing goods or services. It classifies and analyses material, labour and overhead costs, whereas financial accounting reports overall profit and position to outsiders and management accounting supports wider decision making.

  1. AFinancial accounting
  2. BCost accountingCorrect
  3. CManagement accounting
  4. DTax accounting

Explanation

Cost accounting records, classifies and analyses the costs of materials, labour and overheads to find the cost of a product or service and to control it. Financial accounting reports the overall results and position of the business to external users, so it is not the branch described.

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