The document discusses the installation of a cost accounting system aimed at achieving specific objectives efficiently. It outlines key considerations such as organizational structure, data collection, costing methods, and the importance of management involvement. The focus is on creating a flexible, simple, and effective system that addresses various cost-related issues within the business.

1. Pooja Kumari
Assistant Professor
CMG GCW Bhodiakhera, Fatehabad
Cost Accounting
Installation of Costing System

2. It is a system of rules, procedures, cost records
for the purpose of achieving specified objective
at minimum cost.
Its an investment rather expense

3. Objectives to
be Achieved
Study the
Product
Study the
Organisation
Deciding the
Structure of
Cost Accounts
Selecting the
Cost Rates
Introduction of
the System
A Follow-up.

4. Requirements
General
Consideration
Specific
consideration
Principles for
smooth
working
Line of Action

5.  Objective of installation the system
 Areas of Operation
 Organisation of the business
 Conception and reception of the idea
 Collection of data and prompt information
 Cost records and cost books
 Costing methods
 Responsibility accounting

6.  Size and nature of business
 Products
 Organization
 Functional study

7.  Simple and easy
 Flexible
 Gradual changes
 Managers and executive should be taken under
confidence to avoid criticism.

8.  Finalise forms, cards format
 Fix various issues like storing and issue of
material
 Fix issues related to labour cost like overtime, job
evaluation, bonus computation etc.
 Decide about budget and standards
 Decide about books of cost control