decision making and control in a firm. Consequently, cost accounting is the source of much
of the cost data needed in making engineering economy studies. Modern cost accounting
may satisfy any or all of the following objectives:
1. Determination of the actual cost of products or services
2. Provision of a rational basis for pricing goods or services
3. Provision of a means for allocating and controlling expenditures
4. Provision of information on which operating decisions may be based and by means of
which operating decisions may be evaluated