Question

The importance of accurate cost calculation forreceiving orders and economic survival.

Answer 1

Explanation:

It’s no debate that the world is becoming increasingly globalised and its impact on small businesses doesn’t go unnoticed. Regardless of the size of a business or where it chooses to operate, one necessity remains constant, and that’s the need for accurate costing.

Without meticulous attention to cost information, a business would put itself in a very volatile position. It is imperative for a business to track costs carefully so profit can be accurately calculated against it in each period — this lets a business know how well they are doing. In addition, accurate cost data allows a business to sculpt well-informed foresight to make future decisions.