CA Inter P4 · Chapter 1 · Question 7 of 8
Which of the following is NOT an objective of cost accounting?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Preparing financial statements in the form prescribed by company law
Explanation
Cost accounting aims to ascertain costs, help in controlling and reducing costs, and provide information for managerial decisions such as fixing prices. Preparation of statutory financial statements in the prescribed format is the function of financial accounting, not cost accounting.
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