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