Reference no: EM132796154

All companies seek to be prominent and continuous in their business market. Among the many objectives, companies have to build a strong cost system, commensurate with the company's activity and provide accurate information of product. An efficient cost system enables them to control the elements of costs and reduce the costs of products as much as possible while achieving the customer's needs, increasing product sales and maximizing profits and continuity, and increase competitiveness in the business market.

• You have just been appointed as the Cost Manager of Dairymart Ltd, a well -known local manufacturer of dairy products such as milk, yoghurt and cheese. During your first meeting with your subordinates, you make the following remarks: "Businesses that understand cost accounting do well in these economic times and are more profitable than their competitors. Too often companies do not realize they have a problem until it is too late to do something about it."

Problem (a) Explain to your subordinates how the role and duties of a cost accountant differ from that of a financial accountant??????

Problem (b) Elaborate on how the existence of an efficient cost accounting department can be beneficial to a company like Dairymart Ltd.????

Problem (c) The CEO wants to add a new product to its product line - Dairymart ice cream. Explain how the different costing techniques will help internal management to make the right decisions with regards to introduction of the new product.????????????