Which of the following is the best reason why cost accounting information does not need to be comparable to similar information in other organizations?

A) Because no publicly traded companies use cost accounting.

B) because it is only used by investors and creditors.

C) because IFRS and cost accounting are converging which eliminates the need for comparability,

D) because managers that use this information are making decisions only for their organization.

Question

Corey Rosario

Business

6 March, 18:22

Which of the following is the best reason why cost accounting information does not need to be comparable to similar information in other organizations?

A) Because no publicly traded companies use cost accounting.

B) because it is only used by investors and creditors.

C) because IFRS and cost accounting are converging which eliminates the need for comparability,

D) because managers that use this information are making decisions only for their organization.

+4

Answers (1)

Know the Answer?

Willie Hunt · Answer 1

The correct answer is (D)

Explanation:

Every organisation has a different set of accounting principles and they use different accounting software's. Overall, the accounting information of one organisation is not related or comparable with any other organisation because managers usually use that accounting information to make organisational decisions on for their organisation. A firm cannot make a decision by considering accounting information of any other firm.