I. To classify and analyze the expenses concerning the cost of productions and operations.
II. To indicate to the management any inefficiencies and the extent of various forms of waste.
III. To provide data for making statements and recording transactions at regular intervals, say weekly, monthly, or on daily basis, quarterly whichever way the management desires.
IV. Where standard costs are prepared what the cost of production is ought to be and what are the actual costs which need to be recorded and compared.
V. It embraces the accounting procedures relating to the recording of all income and expenditure and the preparation of periodical statements and reports with the object of ascertaining and controlling costs.