Cost Accounting- Meaning & Objectives
Meaning of Cost Accounting: Cost accounting is the process of tracking, recording, and analyzing costs associated with the production of goods or services. It helps businesses determine the cost of each product, service, or department, which is crucial for decision-making and profitability.
Objectives of Cost Accounting:
- To ascertain the cost of products and services.
- To provide information for planning, control, and decision-making.
- To ensure cost efficiency and reduce wastage.
- To help in pricing decisions.
- To assist in budgeting and forecasting.
- To evaluate the performance of departments and employees.
- To facilitate cost control and cost reduction strategies.