hon 2 Refining a cost system includes: ed out of Select one: O Creating as many cost pools as possible all answered mentioned are true O identifying the activities involved in a process classifying as many costs as indirect costs as is feasible Question 1 (Theory – 15 points): You are on a plane traveling to visit family (pre-Covid 19) and you scroll through some news headlines on your tablet

Sollution:- (C) Option "C" is the correct answer.

Reason:- 1) many products which are similar in type of just diversity in the similar range of commodities. Each product has a unique selling point, and therefore it calls for clearer understanding.

  2) Every business, which is involved in various activities have to incur many variables, fixed, and other   costs.The firms can refine their cost system, through the identification of all the activities that the firm is involved in, and then taking into account which these activities use.

3) The system avoids using big, generic categories, such as splitting a cost evenly between divisions. Instead, it allocates indirect costs to the activities that generate those costs.

4) A refined costing system reduces the use of broad averages for assigning the cost of resources to cost objects and provides better measurement of the costs of indirect resources used by different cost objects- no matter how differently various cost objects use indirect resources. • There are three main guidelines for refining a costing system. A)Direct-cost tracing.B) Indirect-cost pools.C)Cost-allocation bases.

5) One of the best tools for refining a costing system is activity- based costing. • Activity-based costing (ABC) refines a costing system by identifying individual activities as the fundamental cost objects.

Conclusion:- Based on the above discussion option "B" is the right answer.

The days of clerks toiling about in their offices in order to extract and record the accounting informations of their firm, are a distant memory, today as the world advances towards new horizons in every field propelled by technology, only a delusional accountant could consider surviving just on the basis accounting knowledge. Technology has become an integral part in not only our professional life but in our day to day life too. Humans are not sentinel creatures of perfection and therefore the system of accounting which is developed and practiced by us suffers from flaws due to our inaccuracy, corruption, dishonesty, lack of foresightedness, window dressing, etc and such flaws can hamper the day to day working of a company or firm.

Technology, a creation of humans was created for eliminating such flaws and inculcating perfection wherever it is required to. Today we are suffering from crisis identical to the one faced by the earliest of humans, 'survival' , because of are ever increasing population and again the principle of survial of the fittest has gained prominence everywhere.

In order to achieve success in my career, I must be well armed with not only the accounting knowledge but also with command over the various accounting softwares in order to be well qualified for any and all professional opportunities that shall come my way.