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The most important function of cost management is to help management focus on factors that make the firm successful. The management accountant is an integral part of management, identifying, summarizing, and reporting on the critical success factors that are necessary for the firm’s success. Critical success factors are a limited number of characteristics, conditions, or variables that have a direct and important impact on the efficiency, effectiveness and viability of an organization. They are the aspects of the company’s performance that are essential to its competitive advantage and therefore to its success. Activities related to the critical success factors must be performed at the highest possible level of excellence.
To be very specific, control is the prime purpose of cost accounting.
to identify, regulate and control the production cost. thanks.
1-Ascertainment of cost and determining the selling price
2-Cost control
3-Ascertaining the profitability
4-Planning and decision making
