The reporting and analysis of a company's cost structure is done through cost accounting. A company's products, services, and any other activities that involve the company are all considered to be cost objects in the process of cost accounting. Cost accounting is useful because it can show how much money a business makes, where it spends it, and where it loses it.

1. Comptabilité analytique
[French]
ખર્ચ હિસાબ
[Gujrati]
Contabilità dei costi
[Italian]
लागत लेखाांकन
[Hindi]
管理会計
[Japanese]
Rachunek kosztów
[Polish]
ਲਾਗਤ ਲੇਖਾ-ਜੋਖਾ
[Punjabi]
Cost Accounting

2. ACCOUNTING….?
Accounting is the processor keeping the accounting books of the financial transactions of the
company. It is the process of measuring, processing, and sharing financial and other information
about businesses and corporations.

3. The reporting and analysis of a company's cost structure is done through cost accounting. A
company's products, services, and any other activities that involve the company are all considered to
be cost objects in the process of cost accounting.
Cost accounting is useful because it can show how much money a business makes, where it spends
it, and where it loses it.
Internal cost controls and efficiency are intended to be reported on, examined, and improved using
cost accounting.
 In a nutshell, cost accounting is a system for management operational
COST ACCOUNTING….?

5. Objectives of Cost Accounting….
It is easy to explain the objectives of cost accounting with respect to some aspects of
business organizations. They are as follows:
1.Fixing Selling Price
Cost accounting allows managers to understand the cost of each product. With the right
data of cost accounting, the organization can fix a particular selling price per unit of
production. In case an organization deals with a particular service, they can fix the charges
for it rightly.
2.Making a Foundation of Total Cost
Making a foundation of cost is the main objective of cost accounting. With the help of a
specific foundation of the cost, a company can understand the level of production it can do
at a time. Moreover, it can divide the total cost and theoretically fragmentize the capital into
different sections of productions like job, process, organization, etc.

6. 3.Determining the Profitable Products
As per the aims of cost, accounting is concerned. It helps an organization to understand profitable
products. If a company deals with several products, it can run a session of cost accounting and select the
specific ones that give proper profits. This way, it can minimize the chances of a loss.
4.Controlling Costs Becomes Easier
The managerial team for a specific business organization can control the overall costs as per the
outcomes of cost accounting. Generally, every business organization executes this process on a quarterly
or yearly basis to determine the exact cost of the overall production. It can also save a lot by putting the
necessary amount in a sector only.
5.Handle Bonus Plans in an Organisation
The best way to keep the daily wagers in peace and expect high-end production from them is by
providing bonuses to them. Apart from bonuses, companies can also give other types of perk's time-to-
time. When we discuss cost accounting and its objectives, we need to understand that it helps an
organisation to calculate the bonus amount and distribute it among the workers.

7. 6.Helps in Proper Decision-making
Decision-making is a vital attribute on which the fate of a business organisation depends. Cost
accounting results act as first-hand information depending on which the board can decide the future
moves of the company,
The managerial board of a specific organisation has the right to make decisions about the
productions of a company as they are experienced and know the production style of the company.
7.Making Statements
Every business organisation has to make statements for keeping records. It is one of the main
objectives of cost and management accounting to provide all necessary data to the company as they
are able to make the statement of production at a specific time. Making statements is important for
another reason as it minimises the chances of fraud and mistakes in the company. One can easily show
the statements as proof that everything is perfect in the company.

8. 8.To Enhance Communication Among Departmental Managers
When the management team organises a cost accounting session, the managers of different
departments communicate with each other for the statements and other documents. So, it acts as one
of the positive attributes of the company. It can enhance the inter-relation between the various
departments of the company.

11. Nashik warehouse limited is considering the purchase of power truck to replace the hunt drugs in
news now my search replacement is this estimated that the effective storage capacity of water house
space can be increased by 50% for use of the power trucks will require the floor of the water
warehouse to be reinforced at an estimated cost of ₹1,00,000 this amount can be written off over the
remaining life of 10 years of the building the warehouse building was acquired on 1st July 1974 for
₹10,00,000 and depreciation has been provided in the account each year add 2% per annum on
straight line basis .
The power truck will cost ₹13,00,000 and will have a service life of 10 years And will have estimate
salvage value of 20,000 .did maintenance cost of these trucks is estimated at 20:00 1000 per annum
the land truck were acquired on 1st July 1991 for ₹60,000 .depreciation has been provided in the
accounts at 5:00 percent per annum on straight line basis the trucks can be sold for ₹24,000 labour
cost very proportionately to the volume of business however
However the use of power truck in place of hand truck will reduce the labour caused by 25% the
company has 25,000 preference share in Mahindra and Mahindra limited. it is proposed to dispose of
20,000 shares to provide funds for the cost of purchase of and power truck.

12. With additional effect warehousing capacity the company has 2 alternatives
1.reduce storage rack by 14% and secure and estimate 20% increase in the volume of business
Or
2.to enter into a contract with a company which will use 80% of their additional capacity at 50% off
present rates.
Fire insurance premium will increase by 4000 per annum other expense will remain same except
where indicated.
The following is considered statement of profit and loss of Nashik warehousing limited for year ended
30th June 2004 .

13. Rs Rs
Income: warehousing rent 60,0000 -
Dividend from M&M ltd. Expense: 25,000 6,25,000
Warehousing Wages 2,08,200 -
Depreciation: Building 25,000 -
Hand Trucks 3000 -
Maintenance of Hand Trucks 5000 -
Insurance 14,000 -
Other Expenses 10,91,800 3,66,000
Net Profit - 2,59,000
Solution

14. TO:
PROF. NEHA KAMBOJ
By;
NAME - ADITYA RAJ
ROLL NO - 2202520014
PROGRAMME - BBA AND MBA
INTEGRATED
COURSE - ANALYSING COST FOR
MANAGERIAL DECISION MAKING
COURSE CODE - SMMC501A