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Accounting For Managers - Cost Estimation And Control-Cost Accounting

Utility Of Cost Accounting

   Posted On :  03.05.2018 10:47 pm

A properly installed cost accounting system will help the management in the following ways:

Utility Of Cost Accounting
 
 
A properly installed cost accounting system will help the management in the following ways:

-   the analysis of profitability of individual products, services or jobs.
 
-   the analysis of profitability of different departments or operations.
 
-   it locates differences between actual results and expected results.
 
-   it will assist in setting the prices so as to cover costs and generate an acceptable level of profit.

-    cost accounting data generally serves as a base to which the tools and techniques of management accounting can be applied to make it more purposeful and management oriented.

-   the effect on profits of increase or decrease in output or shutdown of a product line or department can be analysed by adoption of efficient cost accounting system.

 

Tags : Accounting For Managers - Cost Estimation And Control-Cost Accounting
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