1. Basic objectives of cost accounting is__________. A. tax compliance. B. financial audit. C. cost ascertainment. D. profit analysis

Basic Objectives of Cost Accounting

Cost accounting serves multiple important functions within a business. Among the options provided:

1. Tax Compliance (A): While cost accounting can aid in understanding financial performance, it is not primarily focused on meeting tax obligations.

2. Financial Audit (B): This is more related to external compliance and verification of financial statements rather than the core functions of cost accounting.

3. Cost Ascertainment (C): This is a fundamental objective of cost accounting. It involves the accurate determination of costs associated with products or services, which is crucial for managing expenses and pricing strategies.

4. Profit Analysis (D): Although profit analysis is an important aspect of overall financial management, it relies heavily on the insights gathered through cost accounting.

Conclusion

Given these considerations, the most suitable answer is C. cost ascertainment as a basic objective of cost accounting. This choice emphasizes understanding and controlling costs, which is central to the purpose of cost accounting practices.