The main objectives of Cost Accounting are as follows : * Ascertainment of Cost * Determination of selling price * Cost control and cost reduction :Cost reduction refers to the achievement of Real and permanent reduction in the unit cost of goods manufactured or services rendered without impairing their suitability for the use intended or diminution in the quality of the product. * Ascertaining the profit of each activity :The profit of any activity can be ascertained by matching cost with the revenue of that activity. The purpose under this step is to determine costing profit or loss of any activity on an objective basis. * Assisting management in decision making :Decision making is defined as a process of selecting a course of action out of two or more alternative courses. For making a choice between different courses of action, it is necessary to make a comparison of the outcomes, which may be arrived under different alternatives. Such a comparison has only been made possible with the help of Cost Accounting information. * Identification of profitable and unprofitable products to imp profitability. * Preparation and submission of quotations and tenders with the help relevant information. * Detection and prevention of "wastage, leakage and inefficiencies operation. * Control over inventory-raw material, work-in-progress, finished goods consumable stores.

PURCHASING PROCEDURES IN A CENTRALIZED DEPARTMENT * Initiating purchase requisition : The stores department prepares indents for the purchase of materials and forwards the same to the purchase department. Every department will make the specification of required material. This will be helpful for purchase department to identify that material. * Inviting Tenders and Quotations :For saving money and placing the order to best vendor, purchase department will invite the