Accounting For Managers - Cost Estimation And Control-Cost Accounting
Utility Of Cost Accounting
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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:
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.
- 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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