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Article: The bottom line; victim of cost accounting.
- Article from:
- The National Public Accountant
- Article date:
- April 1, 1990
- Author:
CopyrightCOPYRIGHT 1990 National Society of Public Accountants. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Bottom Line Victim of Cost Accounting
Product design, new product introduction decisions and the amount of effort expended on trying to market a given product or product line are influenced by the anticipated cost and profitability of the specific product. Accurate cost accounting data are necessary in order to determine accurate product figures. If the accounting data upon which the decisions are based are not relevant, then the outcome of these decisions cannot be relied upon to achieve the desired results.
The cost accounting system is the driving force behind product related decisions. Decisions which are critical to a firm's existence are based ...