Objectives of Cost Accounting.

Q4. What are the main objectives of cost accounting?
Ans. Objectives of cost accounting are as follows:

  1. Ascertainment of cost by post costing and continuous costing methods.
  2. Determination of selling price of each product by considering its cost and profit margin.
  3.  Cost Control and cost reduction.
  4.  Ascertaining the profit of each activity so suitability of each activity in business can be determined.
  5. Assisting management in decision making both short term and long term decision through its technique like marginal costing.
  6.  Determining and controlling efficiency through budgetary control, standard costing etc.

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