Objects of Cost Accounting

Objects of Cost Accounting

1. To serve as a guide to price fixing of products.
2. To disclose sources to wastage in various operations of manufacture.
3. To reveal sources of economy in production process.
4. To provide for an effective system of stores and material.
5. To measure the degree of efficiency of the various departments or units of production.
6. To provide suitable means and information to the top management to control and guide the operations of the business organisation.
7. To exercise effective control on the costs, time and efforts of labour, machines and other factors of production.
8. To compare actual costs with the standard costs and analyse the causes of variation.
9. To provide necessary information to develop cost standards and to introduce the system of budgetary control.
10. It enables the management to know where to economize on costs, how to fix prices, how to maximize profit and so on.