Everything you need to know about the advantages of cost accounting. Cost accounting provides tremendous help to a business in its routine and non-routine decisions. The primary advantage of cost accounting, of course, is that it shows precisely where costs are incurred, giving a realistic basis for cost-cutting. It enables management to attribute cost to those units responsible for incurring [...]
This article throws light upon the top eight advantages of business forecasting. The advantages are: 1. Establishing a New Business 2. Formulating Plans 3. Estimating Financial Needs 4. Facilitating Managerial Decisions 5. Quality of Management 6. Encourages Co-operation and co-ordination 7. Better Utilisation of Resources 8. Success in Business. Business Forecasting: Advantage # 1. Establishing a New Business: While setting [...]
In this article we will discuss about the advantages of historical cost. Firstly, historical cost principle automatically requires the recording of all actual transactions in the past. The market value of finished goods can be ascertained without knowing how the goods were actually produced. But there is no way to determine the historical cost of the goods without a record [...]