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Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

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Vanessa Williams
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How To Know What It Costs To Create One Widget

budget financials laptop-902Estimating the accurate cost of products is critical for profitable operations. 

A business must know which products are profitable and which ones are not, and this can be ascertained only when it has estimated the correct cost of each product.

Key Objectives of Cost Accounting

  1. Cost finding
  2. Cost planning and controlling
  3. Cost analysis for managerial decision

Six Advantages of Cost Accounting

  1. Helps in cost control
  2. Helps in decision making
  3. Guides in price fixation
  4. Helps in cost reduction
  5. Finds out profitable and unprofitable operations
  6. Finds out idle capacity

Cost accounting systems cannot be installed without proper financial accounting systems.

CASE STUDY: How A Cost Accounting System Improved Efficiency

Talk with Alliotts in Auckland on 09 520 9200 if you feel your business could benefit from having a Cost Accounting System.

Topics: cost accounting profits