Question

The purpose of cost accounting is to Group of answer choices a. provide management with cost information. b. keep costs for services reasonable. c. separate costs from charges. d. track specific costs in a healthcare organization.

Answer 1

Answer:

A) Provide management with cost information.

Explanation:

Cost accounting is a part of accounting that deals mainly with cost. Cost accounting is that part of management accounting which establishes budgets and standard costs and actual costs of operations, processes, departments or products and the analysis of variance, profitability or social use of funds. Cost accounting provides information on cost to the management for proper decision making. Decision making is concerned with making choices among alternatives. All alternatives have their cost implications. Cost accounting analyses these alternatives and suggest to the management which alternative will be more cost effective cor it compares the cost and benefit which alternative will be more profitable.