Paper Key : IRJ************133
Author: Dr. Gargi Chaudhary,Piyush
Date Published: 07 Jun 2023
Abstract
Every organization must have a cost accounting system in place; failure to do so will eventually have an impact on profits. The efficiency of manufacturing industries depends on the effectiveness of cost accounting systems. These technologies let companies determine the exact cost of producing goods or services, allowing them to make rational decisions about product pricing, budgeting, and manufacturing methods. In order to minimize expenses, waste is avoided both throughout the production process and even during the selling, administration, and distribution processes. Since employee behavior is crucial to achieving organizational goals, a good cost control system must start with employee behavior. The goal of the study is to understand the impact of cost accounting system and techniques on manufacturing industries. This study helps examining costs related to labor, materials, overhead, and other expenses, cost accounting systems can help businesses find inefficiencies and potential areas for improvement in their production processes. The study is qualitative and uses literature studies to analyze the idea of cost accounting system and techniques. A qualitative research methodology was used to collect data. The results reveal that cost control has a positive impact on business profitability and that element of cost, such as materials, labor and overhead cost and workers behavior could be strategically controlled with measures like responsibility accounting, data collection and data reporting. The study suggests that effective cost accounting systems can provide management with key insights into the profitability of different products or product lines. By examining cost data, managers may identify which products are the most profitable and which are not, and they can use this knowledge to strategically plan and allocate resources. Systems for cost accounting can also help manufacturing companies comply with regulatory requirements, such as those relating to tax reporting and financial accounting standards. By maintaining accurate records of their expenses and income, organisations may make sure they are abiding by these regulations and avoid getting into problems.In general, manufacturing industries use cost accounting systems to maintain profitability, make informed decisions, and follow legal requirements. Businesses run the risk of making decisions that cost them money or restrict their potential to grow and flourish if they lack accurate cost data.KeywordsCost, control, profitability, management, budget, production, sales
DOI LINK : 10.56726/IRJMETS41302 https://www.doi.org/10.56726/IRJMETS41302