This can be described as the process of accumulating, measuring, analyzing, interpreting and reporting cost information that is both useful and relevant to the internal and external stakeholders of a business entity. External stakeholders are those who have a vested financial interest in a business or company. For example banks (loans), financial houses (mortgages), investors (investments), etc. Internal stakeholders are the business or company directors, managers, division heads, etc.
One of the many benefits of cost accounting is that it turns data into information, knowledge and wisdom about a business entity?s operations that is useful for:
► measuring performance ► reducing or managing costs ► determining the fees or prices for goods and services ► deciding to authorize, modify or discontinue a program or activity
If you have the better answer, then send it to us. We will display your answer after the approval.
Rules to Post Answers in CoolInterview.com:-
There should not be any Spelling Mistakes.
There should not be any Gramatical Errors.
Answers must not contain any bad words.
Answers should not be the repeat of same answer, already approved.