BANK SEBI Grade A Phase 1 & Phase 2 Mock Test 2024 Accounting and Auditing Cost and Management Accounting
Which of the following best describes the primary distinction between cost accounting and management accounting in terms of their scope and application within an organization?
1
Cost accounting focuses on external financial reporting, while management accounting focuses on internal decision-making.
2
Cost accounting emphasizes historical data, while management accounting emphasizes future projections.
3
Cost accounting involves compliance with regulatory standards, while management accounting does not require such compliance.
4
Cost accounting is concerned with the classification, recording, and allocation of costs, while management accounting encompasses planning, decision-making, and performance evaluation.
5
Cost accounting uses standardized financial statements, while management accounting uses customized internal reports.