What are the Objectives of Cost?

COST OBJECT / OBJECTIVE OF COST:
The objective of cost are as follows:
(1) Determination of Total Cost: To determine the total cost of manufacturing a
product or providing a service.
(2) Helps to fix selling price: On knowing the total cost, a manufacturer will be able to
add the desired profit margin and fix an appropriate selling price.
(3) Helps to monitor and control costs : Understanding the costs helps to monitor
the costs periodically as well as reduce the unwanted controllable costs. Thus it
helps in cost control.
(4) Helps in Comparisons : Costs help to compare the actual costs with the standard
pre-determined costs and cut down any excessive costs. Thus the actual costs can
be constantly compared with the pre-determined costs.