Question - What is the role of Cost Accounting in Price Determination ?
Answer -
Cost Accounting helps management in making revenue decisions like pricing new products or reducing or increasing the price of a product. It also helps the management in taking short-term and long-term product mix decisions. Cost data also helps the management in achieving the best combination of factors being used in the business enterprises.
Cost data assists the management in making sound decisions like reducing price, increasing the volume of sales, increasing the price or improving turnover. In fact, the problem of properly regulating prices and output is largely dependent upon a knowledge of production, distribution and administrative costs per unit of product or of service.