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Importance of Cost Accounting System.
Through the case study, I learnt that a proper Cost Accounting System is very important in a company. Without the accurate system, a company is unable to maximize the profit from the product sold. The product price might be charged too high (over-priced) or too low (under-priced). All these will eventually affect the profitability and revenue as it is actually making very minimum profit or even having loss by selling under-priced product and also might find difficulty to market its over-priced product. Indeed, with the accurate cost accounting system, the company can maximize the profit by setting the appropriate price and compete in the market, or the company can even identify the highest profit-generating product and concentrate their marketing promotion on it...
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