How can cost accounting support the management


Question: How can cost accounting support the management? Cost accounting supports the management by providing information necessary for managing the entire company or individual departments. In the following, we collected exemplary activities of a cost accounting department. Please pick one of the examples and describe how this activity supports managers when they make decisions. a) Comparing the electricity costs of the current and the previous year. b) Determining the cost of manufacturing a car in the past quarter. c) Forecasting the cost of manufacturing a car in the coming quarter. d) Determining the profit of the past year for the entire company and its business segments. e) Identifying cost savings through a quality improvement program. f) Predicting the cost of using two different types of printers.

 

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Accounting Basics: How can cost accounting support the management
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