What is Cost Accounting
Cost accounting is a process of finding out the cost of the products or goods. Cost account helps to understand the pricing value of the products or goods.
Disadvantages of Cost Accounting
- Cost Account has a lack of a uniform procedure. It may bring different results from the same data. So, it means a cost account has not effective results.
- Cost Account is a costly process. It includes many formalities to settle down this process. and it also needs lots of paper works which makes the cost account costly.
- Cost Account Ignore of the futuristic situation of products cost.
- Cost Account includes secondary data. It does not include primary data or short term data. That’s why cost account does not provide effective results.
- Cost Account is enabled to find the financial status of the company.
- Cost Accounting is enabled to find out tax liability of the company. Financial accounts help to find out tax liability.