Question $2$

$10$ Points

Which one of the following statements compares cost reporting and cost control correctly?

Cost management must aim at cost reporting rather than cost control to manage effectively by exceptions.

While cost reporting provides cost data after the opportunity has passed for management to respond to and correct problems, cost control provides cost data in time for management to correct problems in a timely manner.

While cost control provides cost data after the opportunity has passed for management to respond to and correct problems, cost reporting provides cost data in time for management to correct problems in a timely manner.

While cost reporting shows where the company has been financially, cost control does not provide the financial status of a company.