Management Notes

Reference Notes for Management

Objectives of Cost Accounting – Introduction to Cost and Management Accounting | Management Notes

Objectives of Cost Accounting

Objectives of Cost Accounting

Cost accounting involves the systematic tracking of expenses and analysis of the same so that an organization is aware of the costs associated with each product it manufactures or service it renders.

With information regarding the cost of each product or service, management can find cost-saving opportunities, fix prices, maximize profits, and so on. Basic objective of cost accounting is :

Objectives of Cost Accounting


1. Cost Ascertainment:

Cost Ascertainment as a Objectives of Cost Accounting

Enables identification and classification of all costs, distinguishing between direct and indirect costs.

Provides a comprehensive understanding of the cost structure, aiding in pricing decisions and cost management.

Supports accurate product costing, which is essential for setting competitive prices.

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