Question

Briefley describe what is the link between our cost measurements and performance? Why is it important to be careful what you measure?

Answer 1

The link between our cost measurements and performance can be seen as

• Performance measurement for the specified conditions has known/recognized important place of Cost accounting in relation to the specified performance.
• It helps and supports proposition that cost accounting and performance directly balance each other to uplift the trust in performance information and rapid growth in organizational learning.
• On the same lines, the statements about cost accounting helps to understand the performance measurement and cost accounting compete like that of systems of control.
• In this regard research deploys performance measurements and general cost accounting plan information in the budgets with regard to large Unites States cities, in order to check for quality test complementary control relationship and competing at the service levels and organizational level.

It is important to be careful what we measure so as be consistent with the outputs. The accuracy may yield the potential value required and would be in terms be helpful in calculations of other dependent events.