Explain the purpose of cost accounting
Briefly explain the purpose of cost accounting.
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The purpose of cost accounting is to determine the cost of designated cost centers and cost units. Cost is expenditure on the goods and services which is required to accomplish the operations of an organization. A cost centre is area of the organization for which costs are collected for the purpose of cost planning, ascertainment, decision making and control’ (Law, 2010, p. 119 and 116).
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