Why Is Cost Accounting So Important To Students Learning Accountancy In Class 11

You will surely come across the term “cost accountancy” during your 11th Accounts . It’s a specific branch of accounting that includes classification, recording, and allocating current and prospective expenses. In the modern world of commerce, it’s one of the most vital processes required to run a business company. Cost accountancy proves beneficial to the management department of the company as well as its workers. Cost  Accounting Several things make cost accountancy important to students who took 11th Accounts . The first one includes the classification of costs. The word “cost” is generic. The only way to make it useful is to classify it further. Cost accountancy is about recording and classifying such expenses. A few of those classifications include prime cost, direct cost, selling cost, factory cost, etc. Classification of costs lets the management control the same and determine the profitability of the processes and activities. Price determination According to...