- 1 Marks
Question
The basic objective of cost accounting is:
A. Financial audit
B. Cost ascertainment
C. Cost allocation
D. Profit analysis
E. Cost production
Answer
B. Cost ascertainment
Explanation:
The primary objective of cost accounting is cost ascertainment, which involves determining the costs associated with producing a product or providing a service. This process helps businesses understand how much it costs to manufacture their products, enabling more informed pricing and decision-making. Other objectives, such as cost control, cost reduction, and profitability analysis, build on this fundamental concept. Therefore, the correct answer is B. Cost ascertainment.
- Tags: Cost Accounting, Cost Ascertainment, Objectives
- Level: Level 1
- Topic: Introduction to Cost Accounting
- Series: MAY 2023
- Uploader: Theophilus