Main benefits or advantages of cost accounting can be described as follows:
1. Price Determination
Cost accounting plays a key role in price determination of the product. It helps determine optimum selling price of the product by ascertaining the cost of production.
2. Wastage Control
Cost accounting is very helpful in wastage control. It maintains proper accounting of raw materials and labor by which management can easily control the wastage of materials and supplies.
3. Cost Control
Cost accounting assists in controlling production costs as well as process cost, job costs and administrative costs. It uses advance method of production to reduce cost of production.
4. Optimum Efficiency
Cost accounting assures optimum efficiency of operation on the basis of standard costing and budgetary control.
5. Assists In Decision Making
Cost accounting helps the management to take various decision regarding production and future planning. Management can make proper decision with the help of cost data and other information provided by cost accounting.
from Accounting-Management http://ift.tt/2zq3Zwb Advantages Of Cost Accounting - Entrepreneur Generations
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