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Understand The Usefulness Of Cost Accounting To Managers - Ilearnlot
What is the Usefulness of Cost Accounting? The shortcomings inherent in financial accounting have made the management to realize the importance of cost accounting. Meaning: Cost accounting is the classifying, recording and appropriate allocation of expenditure for the determination of the costs of products or services, and for the presentation of suitably arranged data for purposes of control and guidance of management. Whatever may be the type of business, it involves expenditure on labor, materials and other items required for manufacturing and disposing of the product. Moreover, big business requires delegation of responsibility, the division of labor and specialization.