The main objectives of cost accounting can be expressed as follows:
1. Ascertainment Of Cost
Cost accounting helps to ascertain the cost of products, departments, sections, units and different departments of a business firm.
2. To Fix Price
Cost accounting determines the cost of production of the product. So, it guides the management to fix the selling price of the product.
3. Cost Control
It helps to minimize the cost of materials, labor, jobs and process by implementing effective control system.
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4. To Facilitate Decision Making
Cost accounting provides cost information and data to the management. So, it assists the management in decision making process (such as make or buy decision, hire or purchase decision, sell or process further decision etc.).
5. To Maximize Profit
It helps to reduce wastage and control unnecessary cost which leads to higher profit.
