Discuss the social objectives (purposes) of Cost Audit.

Social Objectives or purpose of Cost Audit are as follows: Facilitate in fixation of reasonable prices of goods and services produced by the enterprise. Improvement in productivity of human, physical and financial resources of the enterprise. Channelize enterprise resources to most optimum, productive and profitable areas. Availability of audited cost data as regards contracts containing escalation clauses. Facilitate in settlement of bills in the case of cost-plus contracts entered into by the Government. Pinpointing areas of inefficiency and mismanagement, if any for the benefit of shareholders, consumers, etc., such that necessary corrective action could be taken in time.