Objectives of cost accounting

The main

objectives of cost account is to analyst the financial activities from which the cost involved could be allocated to each job or process and in the main time the actual  cost of each job or process could be ascertained . these objectives are as   follow: 

1. Ascertainment of cost 

                                        the prime objectives of cost Accounting is to ascertain the cost of product . 

2. To determine selling price 

                                               Cost accounting helps the management  determine the selling price of a product .

3. To help to analyze cost

                                                              Analyzing the cost or a product is another objective of cost accounting . 

4. To control cost 

                             Control is very important to reducing  cost . Here , control may be taken as reducing expenses , increasing working efficiency and minimizing of wages.

5. To reduce cost 

                            supplying quality product at minimum cost is symptom of profitability . 

6. To assist the management 

                                              Another objective of cost accounting is to assist the management by providing factual  information for making appropriate decision and formulating future polices .

7. To assist in preparation of final account 

                                                                      Value of closing stock is compulsory to preparing the final account .