This document discusses cost accounting. It defines cost accounting as a formal system to ascertain and control costs by recording all costs incurred in business. The scope of cost accounting includes cost ascertainment, control and reduction, and determining selling price. A cost accountant determines actual costs of products and services. Their roles include establishing cost departments and providing cost information to managers.

2. COST
ACCOUNTING

3.  RAZIYA HAMEED
 MEMUNA TAYYAB
 SARA EJAZ
 AYESHA ABID
 HUMA RASHEED
(2015-AG-194)
(2015-AG-231)
(2015-AG-726)
(2015-AG-381)
(2015-AG-3022)

4.  Cost accounting is a formal system of accounting for costs in
books of accounts by means of which cost of product or
services are ascertained and controlled.
 The recording of all the costs incurred in a business in a way
that can be used to improve its management.
 Scope of Cost Accounting
• Ascertainment of Cost
• Cost Control and Cost Reduction
• Guide to Business Policy
• Determination of Selling Price

5.  A Cost Accountant is a financial specialist
who determines the actual costs associated
with providing a service or manufacturing of
product.
 Roles of Cost Accountant
• Establishes a Cost Accounting department
• Provide Cost Information to Managers
• Specifies the Functions Performed by Cost Accounting
• Prepare Cost Reports

6.  Planning, Studying, and collecting data to determine costs of
business activity such as raw material purchases, inventory and
labor.
 Analyzing data collected and recording results
 Analyzing changes in product design, raw materials,
manufacturing methods or services provided, to determine
effects on cost
 Analyzing actual manufacturing costs and preparing periodic
reports comparing standard costs to actual production costs
 Recording cost information for use in controlling expenditures
 Analyzing audits of costs and preparing reports
 Maintaining Cost Accounting System

7.  Right of access books of accounts and vouchers of the
company.
 Right to get such information and explanations from the
managers related to cost of product, process or inventory.
 Right to get all facilities and assistance from the company to
perform his duties as a cost accountant.
 The company and every officer, in default of not providing
the accounts, vouchers, information, explanations etc. to the
cost accountant, shall be punishable with fine.
 Right to get the remuneration for his work and this
remuneration is decided by the Board of Directors.

8. ELIGIBILITY CRITERIA
• At least Scholars
• Masters in comers or MBA
• CA or ACCA
• CMA or Certified Public Accountant (CPA)
CAREER ADVANCEMENT
• Cost Accounting Manager
• Cost Budget Director
• Chief Cost Accountant
• Internal Cost Audit Manager
• Cost Controller
WORKING CONDITION
• The cost accountant generally works in an office environment,
but is expected to be highly familiar will production
operations, and to regularly visit all significant company
operations

9. SALARY & JOB OUTLOOK
• 16% increase in demand for accountants between 2010
to 2020
• The average starting salary for cost accountants is
between $40,000 and $51,500 per year.
• After three years, the average cost accountant may
make between $45,000 and $63,000 per year, with the
opportunity to move into senior and management
positions.
• This makes cost accounting an attractive specialist
field for financial professionals.