In order to identify expenses, make it easier to plan and regulate business activities, and provide information for both short- and long-term decisions, these are the three key objectives of cost accounting. Over financial accounting, cost accounting has certain clear advantages. Some of them have been successfully discussed. Corrective actions are prompted by the cost accounting system's data on profitable and non-profitable goods and activities. It is simpler to separate and assess each cost item separately, as well as to reduce losses and wastages that result from the production process. Different production processes can be used to cut costs and boost profitability. When demand is weak, there is intense competition, technology is changing, etc., cost accounting aids in the determination of reasonable price.

The data produced by cost accounting can be used to appropriately analyse several possible courses of action. It wouldn't be an overstatement to say that a cost accounting system ensures the best possible use of both human and physical resources. It prevents frauds and deceptions and guides both the employer and the workforce in reaching the organisational objective.