Question - Mention three main reasons for cost accounting
Answer -
Cost accounting plays three major roles. First, it is used to determine the cost of a product through different costing methods. Its second use is to determine the selling price of a given product, which helps the business recover the production cost and earn some profit. Lastly, it is used to analyze and classify the cost of production. This helps the business know what went to waste and how it can improve as time goes by.