Christine Joyce F.

Magote
BSA22A1

COST ACCOUNTING AND COST CONTROL

ASYNCHRONOUS ACTIVITY
March 19, 2021
Company A and Company B are perennial competitors in producing Bunga-tos and Womentos
respectively. Bunga-tos and Womentos are mint flavored candies patronized by yuppies who are
fond having candies in their mouth instead of chewing gum. Both products are sold in the market
at P100 each pack of 100 pieces. Company A is new in the market while Company B is the
pioneer in producing the crowd-favorite Womentos.
Enumerate the significance of cost accounting to Companies A and B in producing Bunga-
tos and Womentos.
The significance of cost accounting to Companies A and B in producing Bunga-tos and
Womentos are:
 Determining what is the respective selling price you will put to the product
because cost accounting is recording, summarizing and interpreting the detail of
the cost of Material, Labor and Overhead so before Company A and B put a price
to the Womentos and Bunga-tos they should know if their selling price is realistic
and if their selling price is fits to the costs of MLO.

 Since Company A and B are perennial competitors in producing Bunga-tos and

Womentos so with the help of cost accounting they will think an alternative thing
that they will do to avoid their competitor to be the well-known in the market so
instead of increasing a selling price they will decrease their cost like finding a
new supplier of the raw materials that has a lower price but quality.

 Cost accounting used in gathering information about their products, with the help
of cost accounting the management will know which among their product costs
are out-of-line so they will make a plan to control that by thinking ways to make
the cost of every type of products the same.

 Company A and Company B will know the total unit cost of the product they
produced because in cost accounting it records every cost that they spend.