Question

Cost accounting is based on the double entry model true or false

Answer 1

ture Cost accounting is based on the double entry model

Answer 2

Answer:

True

Explanation:

Cost Accounting System-

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

Double Entry System-

• A fundamental concept underlying modern bookkeeping and accounting is double entry, which states that every financial transaction has equal and opposite effects in at least two different accounts.
• The concept of double-entry accounting states that assets = liabilities + owners' equity.
• Transactions in the double-entry system are recorded as debits and credits.

From the above discussion we can conclude that, there are the following common features between Cost Accounting and Double Entry System-

• Recorded as debits and credits
• Accounting Equation always balances.

• Every financial transaction affects at least two different accounts with equal and opposite effects.

Hence, Cost accounting is based on the double entry model.

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