Relationship between Cost Accounting and Management

Cost Account
Relation
THE COCACOLA COMPANY

Introduction
 One of the most successful company in the beverage industry to
be formed is the cocacola company.
 The company has been 125 years old starting its operations in
the year 1886.
 The company is listed in the top 100 companies in the Forbes
Magazine.
 The company manufactures four brands of beverages ranging
from coca cola, Diet coke, Sprite and Fanta.

Discussion
 The company has been facing in reduction in sales due to
competition from other brands over the years.
 The sales fell by 21.32% in the year 2016-2017 and by 10.56% in
the year 2017-2018.
 The cost of sales of the company however, also fell due to
reduction in sales but by greater percentages which is 21.6% in
2016, and 11.2% in 2017.
 The reduction in cost can be due to effective management polices
of the company which has hedged the fall in sales with reduction in
cost.
 However, the operating income has increased highlighting policies
to cater to new demands in the modern society.