AAT Elements of Costing: Purpose of Costing
- Created by: vocabularyenthusiast
- Created on: 06-05-18 13:49
View mindmap
- Purpose of Costing
- Cost systems help to provide answers to questions such as 'What does it cost us to make a pair of trainers?' 'What does it cost us to serve a cheeseburger and fries?'
- Used by both manufacturing businesses and businesses provising services
- Help with decision making, planning and control of expenses
- Know revenue from sales
- Know the cost of a firm's output
- Working out the cost of a product or service helps to:
- Determine a selling price
- Value Inventory
- Provide information for financial statements
- Make management decisions (i.e. how many items should be made & sold)
Comments
No comments have yet been made