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