The factors that accelerate the process of refining a costing system include ____________?
Correct answer: D. all of above
- A. increase in product diversity
- B. increase in indirect costs
- C. product market competitions
- D. all of above
Explanation
Greater product diversity, rising indirect costs, and stronger market competition all increase the need for a more refined costing system. Each factor makes broad overhead allocation less reliable, so all the listed factors apply.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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