Cost accounting is often described as the provision of information required by management for specific purposes' Required: State six of these specific purposes.

Cost accounting is often described as the provision of information required by management for
specific purposes'

Required:

State six of these specific purposes.

Answers

Specific purposes of information of cost accounting

- Ascertainment of cost of product: Cost Accounting ascertains cost of production of each
job, process, or work order by applying different methods of cost accounting, such as job
costing, process operation costing, contract costing etc. according to the suitability and
needs of the organization.

- Fixation of selling prices: Cost accounting helps to find out cost of production and fixation
of selling prices of the product or process job or operation. It also helps in preparing
necessary tenders or quotations.

- Measurement of efficiency: Cost accounting measures the efficiency of each product,
process or departments by applying standard cost method.

- Cost control procedure: Cost accounting controls cost by setting standards and compared
with the actual .The deviation between them are identified and if required necessary
controlling measures may be taken.

- Disclosure of waste

- Performance evaluation

- Aids in planning

- For decision making

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marto answered the question on February 15, 2019 at 07:31

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