Q64
Cost accounting was developed because of the _________.
A.
limitations of the financial accounting
AnswerB.
limitations of the management accounting
C.
limitations of the human resource accounting
D.
limitations of the double entry accounting
Answer: Option A
Solution
Answer: Option A
Solution:
Cost accounting was developed because of the limitations of the financial accounting. The limitations of financial statements are those factors that a user should be aware of before relying on them to an excessive extent. The following are all limitations of financial statements: Dependence on historical costs. Transactions are initially recorded at their cost.