How cost accounting affect industry?

There are two (2) techniques be involved in cost accounting:-
1) doing report on financial statements by determining costs of products, processes, projects and etc in a correct amounts
2) can be a tools for management to make a decision making, planning and control the organization

How cost accounting can assist management?
Cost accounting provide analysis of cost behavior, cost-volume-profit relationships, operational and capital budgeting, standard costing, variance analysis for costs and revenues, transfer pricing, activity-based costing and more.

Cost accounting is a type of accounting process that aims to capture company's costs of production by assessing input costs of each step of production including fixed costs and depreciation of capital equipment. Then, in measuring financial performance can help the management to compare input results, output results and actual results.

Cost accounting can be most beneficial as a tool for management in budgeting and in setting up cost control programs, which can improve net margins for the company in the future.



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