Objectives Of Material Control In Cost Accounting

I ensuring that no activity particularly production suffers from interruption for want of materials and stores it should be noted that this requires constant availability of every item that may be needed howsoever small its cost may be.

Objectives of material control in cost accounting. It keeps a check on the expenses made by the company against the set standards and the deviations are recorded and reported continuously. Objectives of cost accounting. 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. Moreover cost of production planning of materials purchase procedure transportation and usage control are parts of materials control.

Cost accounting is the art and science of recording classifying summarizing and analyzing costs with the objective of cost control cost calculations and projections and cost reduction thereby helping management make prudent business decisions. The objectives of a system of material control are the following. Thus the following are the main objectives of cost accounting. Inventory control is confined to the techniques of maintaining stocks at desired levels whether they are raw materials work in progress or finished goods with the primary objective of minimizing the cost.

Another important objective of the cost accounting system is to control the costs. Here we detail about the meaning objectives principles objections against and evolution and development of cost accounting.