Question

The type of management which broadens the focus of accounting because it is concerned with factors that drive costs, such as cycle time and process productivity is called:

a.Cost accounting
b.Financial accounting
c.Cost management
d.Financial management

Answer 1

Cost management is the correct answer, as it encompasses a broader scope than mere accounting practices, looking into strategies to control and reduce costs by considering factors like cycle time and process productivity.

Step-by-step explanation:

The type of management described in the question is cost management. Unlike cost accounting, which focuses on tracking and recording costs, cost management is a broader field that includes strategies to control and reduce costs. It goes beyond the traditional measures of cost accounting by looking into factors such as cycle time and process productivity. These factors have a direct impact on costs. For example, reducing cycle times can lead to faster production rates and lower unit costs, while improving process productivity can lead to more efficient use of resources and reduced waste. Cost management is concerned with making these types of strategic decisions that affect the overall cost structure of a company.