Cost Accounting helps in controlling the costs and increases efficiency. It also helps in framing the budget of the unit or department for the future. It promotes a healthy work environment by rewarding the employees. It helps in analysing the previous year budget, profit and helps in preparing a strategy for the upcoming years. All the factors contribute to the sound costing system. Investors always check the costing system of the company before investing in it. The Costing system influences their decision making. All these positive factors give a positive impression on the investors.