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An important part of the management task is to ensure that operations, departments, processes and costs are under control and that the organization and its constituent parts are working efficiently towards agreed objectives. Although there are numerous other control systems within an organization, for examples production control, quality control, inventory control, the costing system is the key financial control system and monitors and the results of all activities and all other control systems. The detailed analysis and location of all expenditures, the calculation of job and product costs, the analysis of losses and scrap, the monitoring of labour and departmental efficiency and outputs of the costing system provide a sound basis of information for financial control.
Wilfykil answered the question on August 5, 2019 at 06:38