Describe five ways in which cost accounting complements financial accounting in terms of providing information to managers for better decision making.

Describe five ways in which cost accounting complements financial accounting in terms of
providing information to managers for better decision making.

Answers

How financial accounting compliments cost accounting
i) Assist in cost ascertainment/determination
ii) Used to set the selling prices by determining the cost and adding a mark-up as a profit.
iii) Cost controlling by identifying the actual cost and comparing it with the budgeted cost for
corrective purpose.
iv) Measure of efficiency by setting standards and comparing them with the actual results.
v) Planning through establishment of budgets.

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marto answered the question on February 15, 2019 at 07:26

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Related Questions

• The success of an organisation in cost control and cost reduction depends largely on the installation of an ideal cost accounting system which identifies, classifies and...(Solved)
  

  The success of an organisation in cost control and cost reduction depends largely on the
  installation of an ideal cost accounting system which identifies, classifies and records all costs
  accurately and promptly.
  
  Required;
  
  With reference to the above statement, explain four conditions for an effective costing system.

  Date posted: February 15, 2019.  Answers (1)