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CMA Intermediate · Cost Accounting · Introduction to Cost Accounting

Which of the following is a function that falls within the scope of cost accounting rather than being outside it?

Cost control and cost reduction through comparison of actual cost with standards falls within cost accounting scope. Statutory audit reports, company registration and GST rate determination are legal or statutory functions, not part of cost accounting.

  1. ACost control and cost reduction through comparison with standardsCorrect
  2. BPreparing the statutory audit report for shareholders
  3. CRegistering the company with the Registrar of Companies
  4. DDetermining the rate of GST on supplies

Explanation

Cost accounting covers cost ascertainment, cost control, cost reduction and cost reporting, including comparing actual with standard. The audit report, company registration and GST rate determination are legal or statutory matters outside cost accounting scope.

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