Question

Advantages of cost accounting accrue ___________.

• A. only to workers
• B. only to government
• C. only to consumers
• D. to management, workers, consumers and government

Answer 1

The correct option is D to management, workers, consumers and government

Cost Accounting provides various information which are useful to even workers as their wage payments are sometime linked with the productivity.

It helps consumer too as cost accounting provides various measures to have cost control and cost reduction.

Cost Accounting is also useful to the management as it provides lot of information on account of finding out cost of a particular product, fixation of selling price, method of cost control etc. This provide alternative course of action to decide whether one product line shall be continued or not.

Government can collect the tax on the basis of cost parameters and have a proper control over cost of the product.