Question

Can be Cost Accounting information effectively used in assessing management planning, control and decision making by the below mentioned ways.?

Answer 1

It is true that Cost Accounting information can be effectively used in assessing management planning, control and decision making as cost accounting tells us about the various costs incurred by the company in the production process. Costs also helps in ascertaining the profits over a period of time.

Any companies budgeting process is fully based on the cost accounting information provided by the cost departments and the pricing of any product is also done accordingly.

Various controls in the manufacturing organisation are implemented by with the help of cost accounting information so that the variable as well as fixed cost of such an organisation can be reduced as much as possible.
Further planning plays a very important role in an organisations and such planning is based on past records of costs.