OBJECTIVES OF COST ACCOUNTING
1. To ascertain the cost of products or services and to determine the selling price
2. To control costs
3. To provide basis for the management of formulate policies and to carry out its functions efficiently
Formulating policies are:
Determination of break even point( where there will be no profit and no loss)
Introduction of new product or new line of production
whether to shut down plant to operate at loss
replacement of existing machines for automation
whether to make or buy utilisation of idle capacity future expansion and development policies and capital outlays and so on.
4.it assists the management in carrying out it functions of planning budgeting, decision making, organising, controlling pricing and evaluating operative efficiency etc.
5. to ascertain the profitable and unprofitable lines of activities
6.to find the causes that lead to profits/losses
7.to provide basis for the preparation of budgets.
8.to check and control all types of wastages
9.to establish effective control over machines , material and overheads.
10. to help in valuation of inventory, productions
1. To ascertain the cost of products or services and to determine the selling price
2. To control costs
3. To provide basis for the management of formulate policies and to carry out its functions efficiently
Formulating policies are:
Determination of break even point( where there will be no profit and no loss)
Introduction of new product or new line of production
whether to shut down plant to operate at loss
replacement of existing machines for automation
whether to make or buy utilisation of idle capacity future expansion and development policies and capital outlays and so on.
4.it assists the management in carrying out it functions of planning budgeting, decision making, organising, controlling pricing and evaluating operative efficiency etc.
5. to ascertain the profitable and unprofitable lines of activities
6.to find the causes that lead to profits/losses
7.to provide basis for the preparation of budgets.
8.to check and control all types of wastages
9.to establish effective control over machines , material and overheads.
10. to help in valuation of inventory, productions
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