CIMA BA2 · Chapter 1 · Question 5 of 12
Which of the following best describes the main focus of cost accounting?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Establishing the cost of products, services and activities for purposes such as inventory valuation, pricing and cost control
Explanation
Cost accounting gathers, classifies and analyses costs so that the cost of cost units and activities can be determined. This supports inventory valuation, pricing decisions and cost control. It is one part of the wider management accounting function.
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