Question

An effective cost accounting system should match processes that consume resources with the associated _____ in order to maintain competitive advantage. Select the best answer to complete the sentence.

Answer 1

The correct word for the blank space is: Costs.

Step-by-step explanation:

Cost Accounting is a system for the financial allocation of product costs that are processed for resale. Cost accounting is often referred to as managerial accounting as it is used internally by executives to measure results and determine efficiency. Organizations spend a great deal of money on systems used to track and account for expenses, as these systems improve their ability to run the business.

The most used cost accounting systems are Activity-Based Costing, Lean Accounting, and Marginal Costing.

Answer 2

An effective cost accounting system should match processes that consume resources with the associated Costs in order to maintain competitive advantage.

Step-by-step explanation:

The costing system or the product costing system is the cost accounting system. This system involves doing the analysis on the profits, valuation on inventories and controlling the costs. These activities are done for the purpose of determination and the estimation of the cost that are associated for the products. This helps a firm in an effective operation and reduce wastage.

Those firms engaging in an effective cost accounting system will be having the operations in a profitable manner. When a company has the ability to offer its customers with the product of lower price or serving their customers with higher values that makes them pay higher prices. For a company to attain competitive advantage and maintain it, an effective cost accounting system should match processes that consume resources with the associated Costs.