Examveda
Examveda

Cost accounting was developed because of the _________.

A. limitations of the financial accounting

B. limitations of the management accounting

C. limitations of the human resource accounting

D. limitations of the double entry accounting

Answer: Option A

Solution(By Examveda Team)

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.

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