This document provides an overview of chapter 1 of a cost accounting course. It defines key concepts such as cost, cost accounting, and cost accountancy. Cost is defined as the actual or nominal expenditure incurred on or attributable to a specified thing or activity. Cost accounting is the process of accounting for costs from when expenditure is incurred until it is related to cost centers or units. Cost accountancy applies costing and cost accounting principles and techniques to ascertain profitability and present relevant information for managerial decision making. The document explains the differences between costing, cost accounting, and cost accountancy in terms of their scope, functions, periodicity, and persons involved.

1. Subject-cost and works Accounting-I
Class-S.Y.B.Com
Dr.SavitaThorat

2. Chapter I-Basics of Cost Accounting
Contents-
● Concept of Cost,Cost Accounting and Cost Accountancy
● Limitations of Financial Accounting
● Origin of Cost Accounting
● Objectives of Cost Accounting
● Advantages and Limitations of Cost Accounting
● Difference between Financial Accounting and Cost Accounting
● Cost Units and Cost Centers
[Each content explain in separate PPT]

3. Concept of Cost
Oxford Dictionary:Cost is
price paid for
something,But as per the
Chartered Institute of
Management Accountants
London:”Cost is the
expenditure(actual or
nominal)incurred on,or
attributable to,a specified
thing or activity”

4. Concept of Costing
Costing is simply cost finding It is process,technique
and procedure of ascertaining cost.Example like

5. Concept of Cost Accounting
I,C.M.A London”Cost Accounting is the process of accounting for cost from the
point at which expenditure is incurred or committed to the establishment of
its ultimate relationship with cost centers or cost units.” In it wide usage,it
embraces the preparation of statistical data,the application of cost control
method and ascertainment of the profitability of activities carried out or
planned.
Cost Accounting=costing by formal mechanism+Application of cost control
techniques+ascertainment of accurate Profitability

6. Concept of Cost Accountancy
According to ICMA,LONDON Cost accountancy is define as the application of
costing and cost accounting principles, methods and techniques to the
science, art and practice of cost control and the ascertainment of
profitability.It includes the presentation of information derived there from for
the purpose of managerial decision-making.
Cost Accountancy=Costing+Application of cost control techniques and
Ascertainment of Profitability+Presentation of relevant information for
managerial decision making

7. Difference between Costing,Cost Accounting,Cost Accountancy
Point of Distinction Costing Cost Accounting Cost Accountancy
1. Scope It is boarder in its scope It is narrow in its scope It is broadest inits
scope
2. Function It is concerned with
ascertainment of cost
It begins where costing
ends
It is a starting point
3.Periodicity of
functioning
It begin where cost
accountancy ends
It begins where costing
ends
It is starting point
4. Persons involved The person involved is
cost accountant
The persons involved
are cost clerks
The persons involved
are experts in the field
of cost accountancy
such as management
accountant

8. ENDS OF CONTENT 1