Market Segmentation

Separating the market into different categories according to geographical and customers need .For example McDonald couldn't offer meat burger in India because cows are considered sacred in India .So by keeping in mind their religious and people need they focused on providing chicken burgers etc. Similar case with Pakistan they cannot offer pig burger in Pakistan because here it is considered as a Haram thing to eat. Not only this the segmentation also divides the person like a person who is diabetic and a non diabetic, you cannot offer sweet sugary juices to both of them especially for a diabetic person ,NESTLE did in providing its juices to both of its customers,for a diabetic person a sugar free juice so that he/she can also enjoy the taste of NESTLE juice in similar kind of manner.

Scope Of Cost Accounting

Cost accounting provides set piece of information for the company in making efficient decisions regarding company perspective. It includes budget making like determining company's price per unit, by increasing a product production its fixed cost (like rent of the building usage per month) is going to decrease.

Previously with no concept of cost accounting, financial accounting importance was at peak it was also due to early expansion of business field, businesses were static in their environment but now a day's due to competition all around the globe businesses are diverting from being static to dynamic which is to constantly evolve with given circumstances caused the need for cost accounting to increase.  Although financial accounting which uses income statements, balance sheets and cash flow statements is enough to define itself, but this information is not enough for management to make most decisions. Financial accounting doesn't provide every information for every step like for every product prime cost which is (direct material +direct cost + other direct cost).When talking about competition amongst firms it also put an idea of creating more output with least usage of input in order to gain maximum utilization of  product via cost, output and profit. For example when creating  total factory cost (prime cost +factory over head) the company can configure its cost like on its labor and material and can employ suitable arrangements to differ it like instead of using tube lights they can  use energy savers which are less costly and can also help in decreasing electricity bills . By doing this a company is helped in order to compete efficiently , the minimization of the cost as explained above of electricity bills can be further passed on to the customer so that he/she can too enjoy low cost and also helps the company in attaining more customers .This low cost also helps the company in  fulfilling its other financial transactions like expansion of business ,increasing employee benefit like its salary or increase its spending on advertisement helping in increasing customers or their awareness regarding the advantage of using the product. Cost accounting helps management in analyzing the production cost of every unit so that it can update with impacts along the time period .It is mainly concerned with the internal management of the company like directors and managers. Its reports can be prepared daily, weekly and monthly not like financial statements which are mostly made once a year. It helps in planning and controlling the costs for example if a company feels that it is using  extra money on usage of a cloth weaving machine and there are electricity crisis in Pakistan but if the same work if done by labor is cheap and fast then the company should shift its cost to it . Receipts, payments and posting can be done in by making ledgers. For example making a T account of a equipment   , on the debit side we can write its purchase price and on the credit side we can write its sale price if sold.

The scope of cost   accounting is resisted by various factors employees don't feel safe while working with this system, they feel as they haven't been trusted and see this as a way to make them do more work not only this they are also afraid by planning and analyzing after this they might be fired depending upon their performance or the financial reason while comparing it with machines etc. Other than this installing cost accounting structure in a firm with the staff itself is an expensive thing which prohibits companies in installing it.