Describe the duties of a cost accountant in an organization.

Management Accounting Block Revision Mock Exams

Duties of a cost accountant in an organization.

Cost Estimation: Costs need to be estimated to enable the management to plan a head. Estimated costs are also used to evaluate individuals and organizational performance. Prices are also set using estimated costs.

Cost Control: The cost accountant devices and advices managers on various ways of minimizing operation costs so as to maximize quality, after putting into consideration other relevant factors such as quality considerations.

Provides management with information for decision-making: The quality of decisions made by the management depends largely on the quality of information provided by the cost accountant. He advises management on the most profitable ways of doing things. Techniques such as break-even analysis, variance analysis, marginal costing and incremental analysis are critical in this area.

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