Cost accounting involves determining fixed and variable costs. Fixed costs are expenses that recur each month regardless of the level of production. It can help an organization control cost and engage in strategic planning to improve cost efficiency. The advantages of cost accounting are measuring and Improving Efficiency, browse more topics under fundamentals of cost accounting, identification of unprofitable activities, fixing prices, price reduction, control over stock, evaluates the reasons for losses, aids future planning. Examples of companies that use job costing systems include Boeing (airplanes), Lockheed Martin (advanced technology systems), and Deloitte & Touché (accounting). The limitations of cost accounting are it is unnecessary, cannot be adopted by small business concerns, very costly and results are misleading.

Aparika Sharma

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