Explain the significance of cost accounting.
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Significance of Cost Accounting
The significance of cost accounting is its capacity to shed light on the overall profitability of company operations. The better you understand the financial workings of your business, the better you can fine-tune processes and limit unnecessary waste. Cost accounting allows you to look past the day-to-day mechanics of managing cash flow to assess whether your company is actually making money or whether you need to tighten systems and reassess priorities.
The significance of cost accounting is its capacity to shed light on the overall profitability of company operations. The better you understand the financial workings of your business, the better you can fine-tune processes and limit unnecessary waste. Cost accounting allows you to look past the day-to-day mechanics of managing cash flow to assess whether your company is actually making money or whether you need to tighten systems and reassess priorities.
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