Provide an example of how cost tracking might be similar used in a manufaction company
Provide an example of how cost tracking might be similar used in a manufaction company
It is obvious that every method of costing will give you different results because in every method of costing different things are taken into consideration to assess the cost of product. In manufacturing concern mostly companies uses the budgetary control system to control the cost of the company. On the other hand some companies use the standard costing system. Here in both techniques the main purpose is to calculate the cost is to check the deviations to delete the unwanted activities that poses the expenses to the company.
In the budgetary control. Specific budget is allotted to each department of the company. Then company issues the resources as per the budget if any expense goes beyond the budgeted cost then company takes the strict actions to reduce the cost.
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