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  Objectives of Cost Accounting

Objectives of Cost Accounting

Objectives of Cost Accounting can be shortened as follow:

1. To determine the cost of production on per unit basis, for instance cost per liter, cost per kg, cost per meter, cost per ton etc.

2. Cost accounting assists in the determination of selling price. Cost accounting allows deciding the cost of production on a scientific basis and it assists to fix the selling price.

3. Cost accounting assists in cost control and cost reduction.

4. Ascertainment of according to the division, according to the activity and unit profitability becomes possible by cost accounting.

5. Cost accounting also assists in locating wastages, inefficiencies and other excuses in the production processes/services presented.

6. Cost accounting assists in presentation of appropriate data to the management that assist in decision making. Decision making is one of the significant functions of Management and it needs presentation of relevant data. Cost accounting able presentation of appropriate data in a systematic manner so that decision making becomes feasible.

7. Cost accounting also assists in estimation of costs for the future.

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