The correct answer is: "It accumulates production costs and assigns them to products and services."

Here's why:

1. "It is used with periodic inventory systems." - This statement is not necessarily true for all cost accounting systems. While some cost accounting systems may be used with periodic inventory systems, others may be used with perpetual inventory systems. Therefore, this cannot be a defining characteristic of a cost accounting system.

2. "It accumulates production costs and assigns them to products and services." - This is the primary function of a cost accounting system. Cost accounting systems are used to accumulate and assign costs to products and services in order to determine their cost of production and subsequently, their selling price. Therefore, this is a defining characteristic of a cost accounting system.

3. "It is used to record costs of selling activities." - While cost accounting systems may be used to record some costs associated with selling activities, this is not their primary function. The primary function of a cost accounting system is to accumulate and assign production costs, not selling costs. Therefore, this cannot be a defining characteristic of a cost accounting system.

Question

The correct answer is: "It accumulates production costs and assigns them to products and services."

Here's why:

1. "It is used with periodic inventory systems." - This statement is not necessarily true for all cost accounting systems. While some cost accounting systems may be used with periodic inventory systems, others may be used with perpetual inventory systems. Therefore, this cannot be a defining characteristic of a cost accounting system.

2. "It accumulates production costs and assigns them to products and services." - This is the primary function of a cost accounting system. Cost accounting systems are used to accumulate and assign costs to products and services in order to determine their cost of production and subsequently, their selling price. Therefore, this is a defining characteristic of a cost accounting system.

3. "It is used to record costs of selling activities." - While cost accounting systems may be used to record some costs associated with selling activities, this is not their primary function. The primary function of a cost accounting system is to accumulate and assign production costs, not selling costs. Therefore, this cannot be a defining characteristic of a cost accounting system.

Knowee AI · Accepted Answer

The correct answer is: "It accumulates production costs and assigns them to products and services."

Here's why:

1. "It is used with periodic inventory systems." - This statement is not necessarily true for all cost accounting systems. While some cost accounting systems may be used with periodic inventory systems, others may be used with perpetual inventory systems. Therefore, this cannot be a defining characteristic of a cost accounting system.

2. "It accumulates production costs and assigns them to products and services." - This is the primary function of a cost accounting system. Cost accounting systems are used to accumulate and assign costs to products and services in order to determine their cost of production and subsequently, their selling price. Therefore, this is a defining characteristic of a cost accounting system.

3. "It is used to record costs of selling activities." - While cost accounting systems may be used to record some costs associated with selling activities, this is not their primary function. The primary function of a cost accounting system is to accumulate and assign production costs, not selling costs. Therefore, this cannot be a defining characteristic of a cost accounting system.

A cost accounting system includes which of the following?Multiple choice question.It is used with periodic inventory systems.It accumulates production costs and assigns them to products and services.It is used to record costs of selling activities.

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