Question

Cost accounting provides management with accurate information about the cost of manufacturing a product. The type of cost accounting system a business uses depends on the nature of its manufacturing operations.

I Need a research showing the effect of cost accounting in enhancing managerial decisions and the types of cost accounting systems used in the manufacturing companies. with NUMERICAL EXAMPLES

Answer 1

In today’s business world all organisations irrespective of their size, nature of business, profitability etc.
need a wide variety of cost information in making day−to−day operating decisions. The cost accountants
collect, assimilate, collate, and analyse all financial information relating to the organisations. They
consider many factors such as the cost of raw materials, labour, overheads etc. in order to plan and
execute effective management information and control system, inventory control incorporating
mathematical models, investment analysis, internal audit, cost audit, project management etc.
The cost accountants perform one of the most important roles in the entire organisations. They deal with
the preparation of various reports for the knowledge and decision making by the senior management.
Therefore, the companies must provide greater emphasis on the role of the cost accountants.
The role of the cost accountants in the organisations can be enumerated as follows:
(i) to analyse various elements of cost of production/services such as material, labour, overhead
expenses etc.
(ii) to introduce appropriate costing methods in the organisation so as to facilitate management with
the knowledge of cost of production/services for managerial decision making
(iii) to determine the cost of the new product/service in order to facilitate management in arriving at
the correct pricing decisions
(iv) to determine the feasibility and profitability of the various project proposals considered by the
management
(v) to analyse variances against standard by reason to enable concerned department to initiate
corrective action
(vi) collection, collation of extraneous information for management to compare the company’s
performance with that of peers and the industry for better appreciation and decision−making.