ECONOMICS

Detailed explanation-1: -The main objective of cost accounting are ascertainment of cost, fixation of selling price, proper recording and presentation of cost data to management for measuring efficiency and for cost control and cost reduction, ascertaining the profit of each activity, assisting management in decision making process.

Detailed explanation-2: -Cost accounting aims to report, analyze, and lead to the improvement of internal cost controls and efficiency. In short, cost accounting is a system of operational analysis for management.

Detailed explanation-3: -The main objective of cost accounting is to ascertain the cost of goods and services. The expenses that are incurred while producing goods or rendering services are called costs.

Detailed explanation-4: -Cost accounting provides data for periodical income statements and balance sheets, and actual figures to compare with estimates for different periods. Analysing this information helps business managers with effective decision-making.

Detailed explanation-5: -The cost information is important for the managers for of the following three reasons: • based on costs it is decided the acquisition, production or abandon a product; • the costs can be a basis for the price estabilishment; • through the costs it is identified the needs for improvement of the products or services.