ACCA Applied Knowledge · Management Accounting · Accounting for management
Which of the following best describes the primary role of cost accounting within an organisation?
Cost accounting records, classifies and analyses costs to determine what products, services and activities cost. This supports pricing, cost control and inventory valuation. Preparing statutory statements is financial accounting, and giving assurance on them is an audit function.
- ARecording, classifying and analysing costs to determine the cost of products, services and activitiesCorrect
- BPreparing annual financial statements for shareholders in line with IFRS
- CProviding independent assurance that the financial statements give a true and fair view
- DRaising long-term finance from capital markets
Explanation
Cost accounting is concerned with ascertaining and analysing the costs of products, services and activities, which supports pricing, control and inventory valuation. Preparing statements for shareholders is financial accounting, and assurance is the role of audit.
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