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  • What is an example of cost accounting?

    Rent, equipment leases, and insurance premiums are good examples of fixed costs.
    While variable costs such as raw materials and labor fluctuate with production volume, fixed costs remain constant.
    Understanding a company's fixed costs is essential for accurately calculating the overall costs..

  • Why is cost accounting important as a managerial tool?

    Controlling costs: Cost accounting helps the management foresee the cost price and selling price of a product or a service, which helps them formulate business policies.
    With cost value as a reference, the management can come up with techniques to control costs with an aim to achieve maximum profitability..


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Cost accounting is a subset of which of the following