Introduction to Cost Accounting

1. WELL
COME
WELL
COME

2. GOVERNMENT FIRST GRADE COLLAGE
HUMNABAD
PRESENTED BY : VISHAL
DEPARTMENT : B.COM
REGISTER NO : U04BO21C0121
UNIVESITY : GULBARGA
Presentation on :
Introduction of cost accounting

3. Introduction of Cost
accounting
it is the application of accounting and costing principal ,
methods and techniques in the ascertainment of cost and
analysis of selling and or expenses in as compared with
precious excesses or with standards.

4. Meaning of cost
The cost does not have a definite meaning ,
For common people. Cost means
the amount spent On purchasing an article.
According to the oxford dictionary Cost means
the price paid for something.
Meaning
of cost

5. 1.Determination of cost
2.Controling cost
3.Providind information for decision making
4.Asertaining costing profit
5.Preparation of financial and other statement

6. IMPORTANC OF
COST ACCOUNTING
1.Classification of costs
2.Cost control
3.Price determination
4.Fixing of the standards
5.Helps determination the total per unit
cost

7. Financial accounting Cost accounting
a. Financial accounting records transections
relating to outsiders of the business.
a. Cost accounting records internal transections.
b. Financial accounting provides information
regarding the profit and loss as well as the
financial position to owners and other required
authorities.
b. Preparation of cost accounts is to provide
information to the management for decision
making and control.
c. Preparation of financial accounting is
compulsory
c. Compulsory only for certain industries tries
and it is optional for other industries..
d. In financial accounting the operating results
will be provided usually at the end of the year .
d. In cost accounting the information will be
provided to the management as and required.
e. It is not useful in determining the relative
efficiency of workers, machinery etc.
e. It provides valuable information about effcieny
Difference between financial and cost accounting

8. f. it helps to measure the overall
profitability of a firm .
F. It only measure the profitability of a
product or a service .
g. It represents the financial position of
firm accurately .
g. It accounts for the costs per unit of
production .
h. To prepare financial statement. h. It is useful for the management to
planning , controlling and decision
making .

9. Limitations of cost
Cost accounting
[5]
More
paperwork
[4]
Non reliable
[3]
defective
[1]
expensive
[2]
unnecessary
LIMITATIONS

10. Thank you