Cost accounting has been developed because of

  • What is the cost accounting system developed for?

    What Is the Purpose of Cost Accounting? Cost accounting helps organizations evaluate the costs associated with manufacturing a product or providing a service.
    While the process itself requires a considerable level of detail and time, the strategic insights gained make it a worthwhile endeavor for most any organization.Jul 25, 2023.

  • What is the reason for existence of cost accounting?

    Cost accounting developed as a means of enabling organizations to allocate overhead to product production and thus help them make better decisions regarding pricing, investments and product development.Jul 25, 2023.

Cost accounting was developed because of the limitations of the financial accounting. The limitations of financial statements are those factors that a user should be aware of before relying on them to an excessive extent. The following are all limitations of financial statements: Dependence on historical costs.

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