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The CEO will hire a consultant to help her understand the role of cost accounting, the role of ethics in cost accounting, and compare and contrast the absorption and variable costing.
Role of Cost Accounting
Cost accounting is the area of accounting that record, measures, and report information about how much things cost within the organization. Cost accounting is used in the following organization: manufacturing, merchandising, and service companies, governments, universities, and not-for-profit and profit-making enterprise (Maher, 1994, p.3). The role of cost management plays in helping an organization to maintain a competitive advantage by creating more value at a lower cost by efficiently managing an organization’s value chain of activities, processes, and functions (Hilton, 2005)...
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