1.  Initiatingcostsystembydeterminingthe appropriate approachforthe firm,predeterminerate,analyzing
O.H and appliedrates
 Prepare costlistsand calculate Std.costfor pricing bycalculatingprime andconversion costsof standard
products formulaindividually ,thussetasuggestedprice andcalculate profitability
 Calculate productionvariationmonthlyanditsrelative reportbycomparingactual costswithstandardand
actual productionvolume withplaned tocalculate price andvolume variances
 Cost control by Evaluate the alternativesformulaappliedinproductionoralternativesR.Musedandreport
recommendations tobothof productionandR&D managers
 Make periodiccostingsimulation byinitiatingproposed models tomeasuring costsfluctuationand Whatis
the extentof theirimpactonthe profitabilityof specificproducts tore-pricingwithreasonably mannerorany
anotherdecisions