Question

Cost accounting is based on _____________ figures.

Answer 1

Cost accounting is based on summarizing figures .

Answer 2

Cost accounting is based on estimated figures.

• Manufacturers use a cost accounting system to track production processes in a perpetual inventory system.
• In other words, it's a manufacturing-specific accounting system that maintains track of inventory as it goes through the various stages of production.
• The internal management team employs cost accounting to identify all variable and constant expenditures associated with the manufacturing process.
• It will measure and record these charges independently, then compare input costs to output results to aid financial performance monitoring and future firm decisions.