Question

Cost Accounting is based on:
(B) Double Entry System
(A) Single Entry
(C) American Accounting System
(D) All of these​

Answer 1

Explanation:

Cost accounting is a form of managerial accounting that aims to capture a company's total cost of production by assessing the variable costs of each step of production as well as fixed costs, such as a lease expense.

Answer 2

Cost Accounting is based on the Double Entry System. (Option B)

• The process of creating records of all the costs borne while conducting a business is referred to as cost accounting.
• The costs involved in buying inputs, the costs of maintaining and storing the output, etc. all form a part of this process.
• The transactions made are recorded and maintained in the accounting books.
• Here, both aspects of a transaction are noted as a credit or debit.