Q4. What are the main objectives of cost accounting?
Ans. Objectives of cost accounting are as follows:
- Ascertainment of cost by post costing and continuous costing methods.
- Determination of selling price of each product by considering its cost and profit margin.
- Cost Control and cost reduction.
- Ascertaining the profit of each activity so suitability of each activity in business can be determined.
- Assisting management in decision making both short term and long term decision through its technique like marginal costing.
- Determining and controlling efficiency through budgetary control, standard costing etc.