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Q.

Should cost audit of the big corporate sector be made mandatory?

Asked by Damodar Biswal, 14 Nov '09 10:40 am
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Answers (3)

 
1.

It is a wrong perception that cost audit is not relevant in a liberalised scenario as the prices are market driven and not based on cost. It is a very narrow interpretation of the role of cost audit. Cost audit has to play a major role in consumer protection. The consumers, in a liberal economy, are vulnerable to practices such as monopoly or predatory pricing. Curbing these practices require a harmonised and authentic cost database.

Such a database is also essential in pricing of essential goods and regulating the interests of the Government and the public. Considering this, the Standing Committee on Economic Legislation has recommended the extension of cost records and cost audit to various sectors, including fuels, medical and surgical appliances, transportation, industrial machinery, agricultural/earthmoving machinery and defence. Besides, cost audit can play the role of whistle blower in corporate governance framework, as it addresses the value addition or value erosion, as th ...more
Answered by BeHappy, 14 Nov '09 10:50 am

 
  
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2.

Corporates should ONLY be allowed to participate in high technology sectors in my humble opinion sir. Let TATA or the Brillas design India's next generation space craft. Let them design a indegenous aircraft which will compete w/ the Boeing 777. But they should be kept away from mass economy participation.

The corporates don't get any "poorer" by my suggested policy- they just end up staying up late & bustin' them braincells on R&D more than MBA more...but they make the same amount of money if not more. A large scale corporation's inherent strength is its ability to generate funds & multiply & sustain itself w/o govt funding. And also the ability to somehow grab foreign input. By hook or by *crook*. If we channel that advantage into something like say- a space craft research programme, or India's first indegenous passenger aircraft etc., then u still have the corporates productive and by no means "weakened" or "disbanded" .

But when the private sector starts equating ttheir fam ...more
Answered by A Moin, 14 Nov '09 08:35 pm

 
  
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3.

Already it is existing in most of the leading industries.
Answered by GOPI KUMAR, 14 Nov '09 10:54 am

 
  
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