What are the Uses of Costing?

USES / BENEFITS / ADVANTAGES OF COSTING:
(1) Product Mix: Costing helps to determine a suitable product—mix which will earn
reasonable profits for the firm.
(2) Sales Mix: Costing helps in determining a suitable sales mix of the products for the
firm.
(3) Price : Costing helps in determining the total cost and thereby fix an appropriate
price for the product which helps in earning reasonable returns for the organization.
(4) Managerial Decision – Making : Costing facilitates several types of managerial
decision – making in an organization.