Objectives of Cost Accounting

The main objectives or purpose of cost accounting are as follows:

1. Cost accounting is used to prepare budgets and estimates. 

2. It helps in ascertaining product's profitability and suggests various techniques and steps to reduce the cost. 

3. Cost accounting helps management greatly in making the decision about the pricing of the products at the appropriate time.

4. It helps in identifying waste of materials, overheads and time,

5. It helps in identifying the right level of inventory in the warehouse. This causes huge savings in holding cost.

6. A complete cost accounting system highlights the profitable segments of the business. So, management can focus their attention to the right segment to improve the company's position.

7. Cost accounting helps the management in comparing their cost with that of rival companies. As a result, various loopholes get highlighted which management can control to improve its performance.

8. It allows the calculation of the cost of goods manufactured and cost of goods sold. So, management comes to know the profit of the company in a timely manner.

Contents
Financial Ratios Accounting Cycle Accounting Principles Financial Accounting Basics Financial Statements Reporting Bad Debts Current Assets Long-term Assets Voucher System Partnership Depreciation Work Sheet - 10 Column Work Sheet Difference Between Reserve and Fund Accounting for Leases Capital reduction and reconstruction Absorption of Company Amalgamation Accounting for Installment Sales Basis of Recording Profit and Loss Branch Accounting Construction Contracts Revenue Recognition Accounting for Groups Financial Analysis Events After the Balance Sheet Date Deferred Tax Cost Accounting Difference Between Cost Accounting and Financial Accounting Objectives of Cost Accounting Scope of Cost Accounting Classification of Costs Methods of Costing Absorption Costing Pre-determined Overhead Rate Over/ Under Absorbed Overheads Marginal Costing Advantages, Benefits, Pros of Absorption Costing Disadvantages/ Drawbacks of Absorption Costing Advantages of Marginal Costing Disadvantages of Marginal Costing Joint Product Costing Process Costing Practical Difficulties in Installing a Cost Accounting System Elements of Cost Re-Ordering Level Economic Order Quantity EOQ Danger Level Minimum Level Stock Maximum Stock Level Bin Card Stores Ledger Uniform Costing Cost Ratios Benefits of Minimum Stock Level Cost Accounting MCQS - Multiple Choice Questions Multiple Choice Questions on Cost Classification Activity Based Costing (ABC) Throughput Accounting Relevant Cost Break Even Analysis Standard Costing Inventory Management Payroll Accounting Royalty Accounting Statistics Master Budget Salary Income Microsoft Excel Tutorial Other Topics Share or Stock Valuation Model Financial Management Topics Kinds of Endorsement Letter of Credit, Kinds and Its Advantages/ Utilities Modern Functions of a Commercial Banks Difference Between Secured And Unsecured Loan Excel conditional formatting red if negative green if positive How to Remove Extra Spaces in Excel Result Card or Result Sheet Creation Using Excel Basic Accounting MCQS Multiple Choice Questions