COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cost control
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Cost reduction
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Standard costing
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All the above
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Detailed explanation-1: -Cost reduction is the process of decreasing a company’s expenses to maximize profits. It involves identifying and removing expenditures that do not provide added value to customers while also optimizing processes to improve efficiency. Cost reduction typically focuses on generating short-term savings.
Detailed explanation-2: -In a large organization, the departmental heads and top executives form such a committee, while in a small concern, any one of the executives may be entrusted with the responsibility of ascertaining the areas of cost reduction.
Detailed explanation-3: -A cost-benefit analysis involves measurable financial metrics such as revenue earned or costs saved as a result of the decision to pursue a project.