Cost Data

Question: Numerous non accounting department require cost data and must also feed basic data to the cost department. Discuss

Answer: For product research design, the manufacturing departments need estimates of materials, labor and machine process costs; for measuring the efficiency of scheduling, producing, and inspecting products and the departments need to know the cost incurred. 

The personnel department supplies employees wage rates.

The treasury department needs accounting, budgeting, and related reports in scheduling cash requirements.

The marketing department needs cost information in setting prices.

The public relations department needs information on prices, wages, profits and dividends in order to inform the public. 

The legal department needs cost information for keeping many affairs of the company in conformity with the law.