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(a)
Cost accounting:
Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.
To determine: The difference between cost accounting and a cost accounting system.
(a)
Explanation of Solution
The difference between cost accounting and a cost accounting system is explained as below.
Cost accounting is the process of collecting, summarizing and then evaluating each and every alternative course of action that can be undertaken in order to produce a product. The alternative with the most efficient results would be chosen.
Cost accounting system is a branch of
Hence, the difference between cost accounting and a cost accounting system is explained as above.
(b)
The important feature of a cost accounting system.
(b)
Explanation of Solution
The important feature of a cost accounting system is stated as below.
The most important and the most crucial feature of the system is the use of perpetual inventory system. Perpetual inventory system is the system that records the sale as well as the purchase of inventory in the near real time. The system provides the highest details on the changes that are made in the inventory.
Hence, the most important feature of a cost accounting system is stated as above.
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Chapter 20 Solutions
ACCOUTING PRIN SET LL INCLUSIVE
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