Question

In a world-class manufacturing environment, what does accounting emphasize?

1) Standard cost and variance analysis
2) Budgeting and forecasting
3) Financial statement analysis
4) Tax planning and compliance

Answer 1

In a world-class manufacturing environment, accounting emphasizes standard cost and variance analysis.

Step-by-step explanation:

In a world-class manufacturing environment, accounting emphasizes standard cost and variance analysis. Standard cost is the predetermined cost of manufacturing a unit of product, and variance analysis helps identify deviations from the standard cost. By analyzing the variances, companies can identify areas for improvement and take corrective action.

While budgeting, forecasting, financial statement analysis, and tax planning are all important aspects of accounting, they may not be the primary focus in a world-class manufacturing environment.

For example, budgeting and forecasting are more relevant for planning and controlling expenses, while financial statement analysis focuses on evaluating a company's financial performance. Tax planning and compliance, on the other hand, deal with minimizing tax liabilities and ensuring compliance with tax laws. These aspects may still be important, but they may not be emphasized to the same extent as standard cost and variance analysis in a world-class manufacturing environment.