Question - Explain cost accounting. what are the objectives of doing it?
Answer -
Cost Accounting is the process of classifying and recording of expenditure incurred during the operations of the organization in a systematic way, in order to ascertain the cost of a cost center with the intention to control the cost.
Following are the basic three objectives of Cost Accounting:
- Ascertainment of Cost and Profitability
- Cost Control
- Presentation of information for managerial decision making.