Uses of cost information

1. Cost information is used to determine the profitability of a product or service.
2. It helps in making pricing decisions by providing insights into the cost structure of the business.
3. Cost information is used to identify areas of inefficiency and waste in the production process.
4. It helps in budgeting and forecasting by providing accurate cost estimates for future periods.
5. Cost information is used to evaluate the performance of different departments or business units.
6. It helps in decision-making by providing insights into the cost-benefit analysis of different options.
7. Cost information is used to negotiate with suppliers and vendors to get the best possible prices.
8. It helps in identifying the breakeven point for a product or service.
9. Cost information is used to determine the optimal level of production to maximize profits.
10. It helps in identifying areas where cost reductions can be made without compromising quality or customer satisfaction.