Friday, October 24, 2014

Importance of Cost Accounting

Now this present business situation across the world the importance of cost accounting is badly required. Economy and this modern social time each an every sector cost accounting is badly needed. The importance of cost accounting as follows:
* Determination of cost
* Comparative analysis of cost
* Determination of selling price
* Cost control
* Economy of cost
* Continuous discussion of cost
* Identification of profitable goods
* Determination the causes of cost variance
* Preparation of budget
* Justification of efficiency
* Determination of quoted price
* Control system of account
* Development of organizational structure
* Incentive wages
* Determination of maximum production level
* Prevention of falsification and frauds
* Advantage of creditors and investors
* Preparation of cost sheet
* Importance as a subject study
* Necessity in different fields
These are mostly thinkable advantages of cost accounting :)