COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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To make the products famous
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To determine the selling price
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To determine the GST
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To get profit
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Detailed explanation-1: -The selling price, be that of a product or service, is the customer or client’s final price. It’s extremely important to know how to calculate selling price because if you don’t make a profit while also securing a position in the market, your business will not survive.
Detailed explanation-2: -So, knowing product cost is crucial to their success because they have to manage their costs to be profitable. So many sales decisions have to be made based on COST. Occasionally you are faced with a sales opportunity for which only incremental costs and revenues for that one transaction are relevant.
Detailed explanation-3: -The cost of production is an important factor for businesses to consider when assessing their financial health. If a product’s cost of production is consistently higher than the profits it earns, the company may cease production to stay within budget.