The correct answer is: A. limitations of the financial accounting.
Cost accounting is a branch of accounting that focuses on the measurement, analysis, and reporting of costs. It is used to help managers make decisions about pricing, production, and other aspects of a business.
Financial accounting, on the other hand, is a branch of accounting that focuses on the preparation of financial statements for external users, such as investors and creditors. Financial statements provide information about a company’s financial position, results of operations, and cash flows.
Cost accounting is different from financial accounting in several ways. First, cost accounting focuses on internal users, while financial accounting focuses on external users. Second, cost accounting uses different methods of measurement and analysis than financial accounting. Third, cost accounting reports different types of information than financial accounting.
The limitations of financial accounting led to the development of cost accounting. Financial accounting is limited in its ability to provide information that is useful for decision-making. For example, financial accounting does not provide information about the costs of individual products or services. This information is important for managers who need to make decisions about pricing, production, and other aspects of a business.
Cost accounting was developed to provide information that is useful for decision-making. It focuses on the measurement, analysis, and reporting of costs. This information can be used by managers to make decisions about pricing, production, and other aspects of a business.
The other options are incorrect because they are not limitations of financial accounting. Human resource accounting is a branch of accounting that focuses on the measurement and reporting of the costs and benefits of human resources. Double entry accounting is a system of accounting that records all financial transactions in two accounts.