D. Alejandro Romero
Cost Accounting
02/06/2018
Chapter 3
In the actual development of cost systems and techniques, the three main objectives are pursued,
the measurement of costs, the most accurate correction of costs, the process, the product and the
service, and the way to reduce costs. Regarding the measurement of costs, its objective is to
control the absolute and relative evolution of the same. Regarding the allocation of the same to
the activities, processes, products and services, the goal is to know the contribution that each
activity or product contributes to the profits of the company.
The costs serve, in general, for three purposes:
Provide reports on costs to measure the utility and evaluate the inventory (income statement
and balance sheet).
Offer information for the administrative control of the operations and activities of the
company (control reports).