Meaning of Cost Accounting
Previously, cost accounting was merely considered to be a technique for the ascertainment of costs of products or services on the basis of historical data. In course of time, due to competitive nature of the market, it was realized that ascertaining of cost is not so important as controlling costs. Hence, cost accounting started to be considered more as a technique for cost control as compared to cost ascertainment. Due to the technological developments in all fields, cost reduction has also come within the ambit of cost accounting. Cost
Owning a boat yard is indeed a great challenge to Sarah Bates. In Bates case she was able to buy a boat yard with a lot of stunning opportunities to offer. The properties of the business were a large sheet for the winter storage of boats. There was plenty of empty land on the shore for outdoor storage. The yard can also be hired for hauling. In the spring and time to time during other seasons, there was a good amount of business available for painting and repair works on boat. There was a large-sized work shed containing woodworking tools and space in which to construct about six boats up to 40 feet in length at one time. The property included a good-sized wharf and float, a store for the sale of marine hardware and supplies, and gasoline pumps.
1. There is a high level of business opportunity to manage
2. There was a high level of uncertainty of what kind of…