What Are The Managerial Uses Of Cost Accounting Information?

Cost accounting information is used by many departments in an organization. Since cost accounting information is very granular as compared to financial accounting, it is used by the finance, purchase, marketing as well as human resource departments. It will reveal the profitability of a particular product line or category.

This will give the manager an idea as to what needs to be done with a particular product. It might require greater marketing support or a higher R & D budget or the market itself needs to be changed. Maybe the product itself has to be killed. Cost accounting is very fascinating because depending on the technique that is used, the results could be wildly fluctuating.

The human resource department could analyze the cost of its recruitments as well as the allocation of the resources. It will paint an accurate picture if the resources have not been allocatted in an optimal manner. Cost accounting is also used by production managers.

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