Following are the main objectives of cost accounting:
1. Used to
calculate per unit cost of product.
2. Used to find per
unit material, labour and overhead of the product.
3. Used to find
material wastage which includes analysis of normal and abnormal loss.
4. Provides
information that is used in pricing of product.
5. Used to
ascertain the profitability of different products and their demand in the
market.
6. Provides data
that is used in making decision that how to maximize profits and minimize
costs.
7. Helps in
preparation budgets of the functions of the organization and provides budgetary
controls over the budgets.
8. Used in making
capital budgetary decisions.
9. Used to advise
management on future expansion policies.
10. Cost accounting
data is used in cost auditing by auditors.
11. Used to
calculate the incentives, bonuses to employees based upon their performance.