Cost audit

Cost audit is a detailed examination of a company's production costs to ensure accuracy and transparency. It involves reviewing how costs are calculated and recorded, identifying areas where efficiencies can be improved, and verifying that cost data aligns with financial records. This process helps management make informed decisions, controls expenses, and ensures pricing strategies are based on reliable information. Cost audits also assist regulators in monitoring compliance with industry standards and government regulations, promoting fair competition and transparency in business operations.