Question

what are the advantages and disadvantages of cost audit?​

Answer 1

Answer:

Explanation:

Advantages

1. Cost audit helps in detection of errors and frauds.

2. It helps in cost control and cost reduction.

3. It enables the management to identify loss and making propositions.

Disadvantages

1. Holding a cost audit can be expensive. This is because a company will often bring in an independent auditor who are normally charging higher price.

2. A cost audit can be a long process which will likely involve more time. This extra time and effort can impact an employees day to day routine work.

Hope it will help you