A major purpose of a cost accounting system is to
A) compute the cost of goods sold for the income statement.
B) classify all costs as operating or marketing costs.
C) assist creditors in determining whether to grant a loan.
D) show investors a company is operating efficiently.
A) compute the cost of goods sold for the income statement.
You might also like to view...
Which of the following is one of the political behaviors described in the textbook?
A. self-promotion B. reverse integration C. mentoring D. cutting costs
Which of the following set of standards is at the heart ASOBAT?
a. Relevance, Verifiability, Objectivity, Usefulness b. Relevance, Verifiability, Freedom from Bias, Quantifiability c. Reliability, Verifiability, Freedom from Bias, Quantifiability d. Relevance, Usefulness, Freedom from Bias, Objectivity
Using different depreciation methods for book purposes versus tax purposes for the same asset is:
A) not allowed since the amount can only be calculated one way or the other, not both. B) the direct result of the differing goals of financial and tax accounting. C) contrary to GAAP. D) against the Internal Revenue Code, and as such, against the law.
Period costs can refer to expenditures necessary to manufacture products during the time period.
Answer the following statement true (T) or false (F)