installation of a costing system

1. Submitted by-
Neeraj Chaudhary
Roll No. 50
IMS,KUK

2. Installation of costing systems is not a expense
but an investment as the rewards are much
greater then the expense incurred. The cost
system is for the business and not the
business for a systems of cost. Therefore ,the
system has to be designed as to meet the
specific need of the enterprise.

3. A. General Consideration for
Installing Costing System
1. Objective of Installation the System.
2. Area of Operation.
3. Collection Data and Prompt Information.
4. Cost Records in Cost Book.
5. Control System of Cost.
6. Types and Methods of costing.

4. B. Specific Consideration of Installing
Costing System
1. Size and Nature of Business
2. Products
3. Organization
4. Functional Study
(like; manufacturing, administration, selling &
distribution)

5. 1. Lack support of top Management
2. Non-cooperation by other staff
3. Shortage of trained staff
4. Heavy cost of installation and operation of
costing system.

6. Principles Of Smooth Working
• The system should be simple & easy to operate.
• It should be flexible.
• Minimum disturbance in the existing system,
should only be done when desirable.
• Desired changes should be introduced gradually.
• Confidence be created in the minds of
management and executives regarding the use of
system.

7. THANK YOU