Benefits of operating an integrated cost accounting system.

An integrated system is where cost accounts and financial accounts are combined in one set of accounts such an integrated system has the following advantages

  • Cost data can be obtained without delay as cost accounts are posted directly from the books of original entry.
  • It facilitates the use of It systems.
  • Integrated cost accounting system helps to coordinate the various forms of an organization.
  • There is no duplication of work hence saving in clerical cost.
  • Information obtained can be used by the management for decision making as well as financial reporting purposes.
  • Only one set of accounts is maintained and therefore there would be one profit results hence no need of reconciling
(Visited 175 times, 1 visits today)
Share this:

Written by