Explain advantage and disadvantage of cost accounting.

QuestionsCategory: QuestionsExplain advantage and disadvantage of cost accounting.
Poonam Sharma asked 8 months ago

advantage and disadvantage of cost accounting

1 Answers
afaq jafri answered 8 months ago

Cost accounting is a process of analyzing and identifying the cost of per unit manufacturing.
Advantages of Cost Accounting

  • it helps to reduce the cost.
  • it helps to improve financial accountability in the company.
  • it makes accounting process easy.
  • It improve efficiency.
  • It helps to guide in Reducing Prices

Disadvantages of Cost Accounting

  • It is complex task.
  • It is expensive.
  • It leads to over absorption.
  • It has Lack of Accuracy.
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