Introduction to cost accounting
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This document provides an introduction to cost accounting. It defines cost as a monetary measurement of resources used for production and defines cost accounting as the process of classifying and analyzing expenditures to determine the total cost of a unit of production. The objectives of cost accounting are to ascertain costs under different situations, determine selling prices, control efficiency, and provide a basis for operating policies. Cost accounting is described as a branch of knowledge, a science, an art, and a profession. The scope of cost accounting includes cost ascertainment, accounting, control, reporting, and auditing.
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Costing system
Cost accounting is the process of recording income and expenditures and preparing statistical data to ascertain and control costs. It began developing in India in 1944 with the Institute of Cost and Work Accountants conducting examinations in cost accounting. After India's independence, rapid industrialization increased the need for cost accounting across many industries like textiles, chemicals, fertilizers and vehicles. Effective cost accounting systems help with pricing, production planning, inventory control and cost reduction to aid management decision making.
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This document provides information about Lalbag Chemical & Perfumery Works Ltd's accounting practices. It discusses their cost accounting methods, including labor costing which treats production labor as fixed and indirect labor as monthly. It also describes their use of historical costing to value assets on the balance sheet at original purchase price. Finally, it lists their fixed costs like salaries and buildings, and variable costs like materials and utilities.
Introduction of Cost Accounting
This document provides an introduction to cost accounting, including its objectives, importance, and key concepts. It discusses the emergence of cost accounting as a field and defines it as a method for accumulating, classifying, and interpreting cost information to aid in planning, control, and decision making. The document also outlines the advantages of cost accounting for management, employees, creditors, and consumers. It emphasizes that cost accounting is important for controlling costs, measuring efficiency, budgeting, and determining prices. Finally, it discusses essential conditions and factors for installing an effective cost accounting system, such as having efficient material and wage payment controls.
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This document provides an overview of accounting and its branches. It defines accounting as a specialized information system that records transactions and provides economic information. The main branches are financial accounting, cost accounting, and management accounting. Financial accounting records money transactions between an entity and third parties. Cost accounting determines costs of products, processes, and projects. Management accounting assists management in formulating policies and planning operations. The document also discusses the history and evolution of cost accounting and its contributions to functions like planning, controlling, decision making, inventory management, and financial analysis.
Cost accounting
Cost Accounting-
-Meaning of Cost Accounting
-Scope of Cost Accounting
-Nature of Cost Accounting
-Relationship b/w Financial Accounting & Cost Accounting
-Cost Accounting v/s Management Accounting
-Objectives of cost accounting
-Function of cost accountant
-Essentials of cost accounting
-Advantages of cost accounting
-Limitations of cost accounting
-Role of cost in cost accounting
-Cost Unit & Cost Centre
-Cost Techniques
-Costing Systems
-Costing Methods
-Cost Classification
-Components of total cost
-Cost Sheet.
Cost accounting
The document discusses cost accounting and its evolution from a technique for ascertaining product costs to a technique for cost control and reduction. It defines cost accounting as recording, classifying, and summarizing costs to determine product costs, plan and control costs, and provide information for management decision making. Cost accounting is distinguished from financial accounting in that it focuses on internal cost analysis for management purposes, uses estimated data, and classifies costs as fixed and variable.
Cost accounting
Introduction of cost sheet and cost accounting.
1) Introduction
2) An objective of Cost sheet
3) Classification of Cost sheet
4) Advantage and Dis-advantage of Cost sheet
5) Different between Financial Accounting and Cost Sheet Accounting
Study guide for chapters 1 thru 5
Chapter 1-5 of the study guide cover the following topics:
[1] Comparison of financial and managerial accounting, cost accounting systems, activity-based costing, just-in-time, and cost-volume-profit analysis. [2] Calculating job costs, process costs, predetermined overhead rates, and variances. [3] Understanding the differences between traditional and activity-based costing systems and when to implement ABC. [4] Analyzing cost behavior, calculating break-even points, margin of safety, and target profits. The terminal objectives cover preparing various accounting entries and reports, calculating budgets, variances, and project cash flows.
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Cost accounting is the process of recording income and expenditures and preparing statistical data to ascertain and control costs. It began developing in India in 1944 with the Institute of Cost and Work Accountants conducting examinations in cost accounting. After India's independence, rapid industrialization increased the need for cost accounting across many industries like textiles, chemicals, fertilizers and vehicles. Effective cost accounting systems help with pricing, production planning, inventory control and cost reduction to aid management decision making.
Cost Accounting presentation on a Company
This document provides information about Lalbag Chemical & Perfumery Works Ltd's accounting practices. It discusses their cost accounting methods, including labor costing which treats production labor as fixed and indirect labor as monthly. It also describes their use of historical costing to value assets on the balance sheet at original purchase price. Finally, it lists their fixed costs like salaries and buildings, and variable costs like materials and utilities.
Introduction of Cost Accounting
This document provides an introduction to cost accounting, including its objectives, importance, and key concepts. It discusses the emergence of cost accounting as a field and defines it as a method for accumulating, classifying, and interpreting cost information to aid in planning, control, and decision making. The document also outlines the advantages of cost accounting for management, employees, creditors, and consumers. It emphasizes that cost accounting is important for controlling costs, measuring efficiency, budgeting, and determining prices. Finally, it discusses essential conditions and factors for installing an effective cost accounting system, such as having efficient material and wage payment controls.
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This document provides an overview of accounting and its branches. It defines accounting as a specialized information system that records transactions and provides economic information. The main branches are financial accounting, cost accounting, and management accounting. Financial accounting records money transactions between an entity and third parties. Cost accounting determines costs of products, processes, and projects. Management accounting assists management in formulating policies and planning operations. The document also discusses the history and evolution of cost accounting and its contributions to functions like planning, controlling, decision making, inventory management, and financial analysis.
Cost accounting
Cost Accounting-
-Meaning of Cost Accounting
-Scope of Cost Accounting
-Nature of Cost Accounting
-Relationship b/w Financial Accounting & Cost Accounting
-Cost Accounting v/s Management Accounting
-Objectives of cost accounting
-Function of cost accountant
-Essentials of cost accounting
-Advantages of cost accounting
-Limitations of cost accounting
-Role of cost in cost accounting
-Cost Unit & Cost Centre
-Cost Techniques
-Costing Systems
-Costing Methods
-Cost Classification
-Components of total cost
-Cost Sheet.
Cost accounting
The document discusses cost accounting and its evolution from a technique for ascertaining product costs to a technique for cost control and reduction. It defines cost accounting as recording, classifying, and summarizing costs to determine product costs, plan and control costs, and provide information for management decision making. Cost accounting is distinguished from financial accounting in that it focuses on internal cost analysis for management purposes, uses estimated data, and classifies costs as fixed and variable.
Cost accounting
Introduction of cost sheet and cost accounting.
1) Introduction
2) An objective of Cost sheet
3) Classification of Cost sheet
4) Advantage and Dis-advantage of Cost sheet
5) Different between Financial Accounting and Cost Sheet Accounting
Study guide for chapters 1 thru 5
Chapter 1-5 of the study guide cover the following topics:
[1] Comparison of financial and managerial accounting, cost accounting systems, activity-based costing, just-in-time, and cost-volume-profit analysis. [2] Calculating job costs, process costs, predetermined overhead rates, and variances. [3] Understanding the differences between traditional and activity-based costing systems and when to implement ABC. [4] Analyzing cost behavior, calculating break-even points, margin of safety, and target profits. The terminal objectives cover preparing various accounting entries and reports, calculating budgets, variances, and project cash flows.
Basics of cost accounting
This document provides an overview of cost accounting basics, including:
1. It defines cost accounting and its objectives such as preparation of cost statements, ascertaining profitability, and formulating business policies.
2. It outlines the functions of cost accounting like ascertaining, estimating, and controlling costs to improve efficiency and reduce costs.
3. It describes a cost sheet, which is a report that accumulates all costs associated with a product or job, and can be used for cost control and setting future prices.
Role of Cost Accounting
The document defines cost accounting as the process of accounting for costs from when they are incurred to how they relate to cost centers and units. It involves preparing statistical data, applying cost control methods, and determining the profitability of activities. Cost accounting helps with ascertaining, estimating, and controlling costs, reducing costs, setting selling prices, facilitating financial statements, and providing a basis for operating policies.
Cost accounting
Cost accounting deals with determining the costs of products and services by recording, classifying, and analyzing expenses and revenues. It provides information internally for cost control and decision making, but does not depict the overall financial position of the company. Some limitations of cost accounting include that it is not an exact science, there is no uniformity in procedures, and it can be an expensive system to implement for some businesses.
Cost accounting
Cost accounting is the process of collecting, assigning, and evaluating costs to products and services to understand where a company earns and loses money. It provides input for managerial decision making regarding future profits. Cost accounting objectives include determining selling prices, controlling costs, providing information for decisions, ascertaining costing profit, and facilitating financial statements preparation. It is important for management to determine product costs, facilitate planning and control, eliminate waste, provide estimates and identify unprofitable activities. Cost accounting also benefits employees through incentive plans.
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Cost accounting is the process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information about the costs of products, services, or activities. It provides information to management for planning and control, cost analysis and reductions, decision-making, and profitability analysis. The document outlines the meaning, objectives, advantages, and disadvantages of cost accounting. The key advantages are that it helps measure efficiency, identify profitable and unprofitable activities, set prices, guide cost reductions, and provide information for planning. The main disadvantages include that cost accounting systems are expensive to implement and maintain, complex, not applicable to all businesses, and lack complete accuracy and uniformity.
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This document defines cost accounting and outlines its key objectives and terminology. Cost accounting is the process of recording, classifying, and summarizing costs to determine the costs of products/services, plan and control costs, and provide information to management for decision making. The objectives of cost accounting include ascertaining, estimating, controlling, and reducing costs to determine selling prices and facilitate financial reporting. Cost accounting provides advantages like cost classification, determining adequate selling prices, and controlling expenses. However, it also has limitations like using estimates and not including all income/expenses.
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This document provides an overview of cost accounting, including definitions, objectives, key terms, and differences from financial accounting. It defines cost accounting as the process of recording, classifying, and analyzing costs to provide management with information to control costs and make decisions. The objectives of cost accounting are to ascertain costs, control costs, provide information for decision making, and determine selling prices. Key terms explained include cost unit, cost centre, and types of each. Differences between cost and financial accounting are outlined across areas like purpose, statutory requirements, and cost analysis capabilities.
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This document defines key concepts in cost accounting including cost, costing, cost accounting, cost estimation, cost ascertainment, cost allocation, cost apportionment, cost control, cost reduction, absorption costing and others. It explains the objectives and functions of cost accounting as well as the significance and limitations. Components of cost are defined including direct materials, direct labor, factory overheads, administrative overheads and selling overheads. The differences between cost unit and cost center as well as cost estimation and cost ascertainment are also summarized.
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Cost accounting is defined as a systematic process for recording and reporting the measurement of costs of manufacturing goods and services in total and in detail. It includes methods for identifying, classifying, allocating, aggregating, and reporting costs and comparing them to standard costs. Cost accounting provides management with detailed cost information needed to control current operations and plan for the future. While cost accounting information is also used in financial accounting, its primary function is for use by managers in decision-making. Cost accounting focuses on computing costs rigorously for cost control and reduction and reports internally, whereas financial accounting analyzes transactions, adheres to reporting standards, and reports externally.
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This document discusses the evolution and importance of cost accounting. It outlines the historical development of cost accounting from its origins in bookkeeping through modern developments. Key points include Charles Babbage emphasizing the need for cost accounting in 1830, the establishment of modern factory cost accounting before WWI, and the extension of cost accounting techniques to distribution in the 1930s. The document also covers different costing methods like job costing, process costing, and departmental costing. It discusses how cost accounting helps management with pricing decisions, estimates, cost control, productivity analysis, and inventory management. Overall, the document provides an overview of the history and applications of cost accounting.
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Gives an idea regarding cost accounting, its nature , objectives, limitations. Also helps to understand the requirements of a good costing system.
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Cost accounting provides several key advantages for businesses. It guides businesses in reducing prices when necessary, such as during economic downturns, by properly assessing costs. Cost accounting also provides information needed for proper production planning and determining whether to expand production of certain products. Additionally, it identifies profitable and unprofitable business activities by comparing the cost of each product or job to the price obtained. Finally, cost accounting enables businesses to measure, maintain, and improve efficiency through comparisons and analyzing differences.
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A power point presentation describing some basic definitions, father of cost accounting, Indian aspect of cost accounting and Various Methods and Techniques of costing.
Presented by: Aquib Ali, Ajay Gupta and Ashwin Showi. (M.Com students)
at the Bhopal School of Social Sciences(BSSS) on 6 September, 2017
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Cost accounting is the process of determining and accumulating the cost of a product or activity. It provides information about the ascertainment and control of costs for products, services, and decision making. The objectives of cost accounting are determining selling prices, controlling costs, providing information for decisions, ascertaining profitability, and facilitating financial statements. Cost accounting differs from financial accounting in its objectives, nature, data recording, users, analysis, and presentation. It is important for management, employees, creditors, and the national economy by aiding price fixation, cost reduction, eliminating waste, and identifying unprofitable activities. Limitations include being expensive, increasing workload, and being unnecessary for cost control in some cases.
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Basics of cost accounting
This document provides an overview of cost accounting basics, including:
1. It defines cost accounting and its objectives such as preparation of cost statements, ascertaining profitability, and formulating business policies.
2. It outlines the functions of cost accounting like ascertaining, estimating, and controlling costs to improve efficiency and reduce costs.
3. It describes a cost sheet, which is a report that accumulates all costs associated with a product or job, and can be used for cost control and setting future prices.
Role of Cost Accounting
The document defines cost accounting as the process of accounting for costs from when they are incurred to how they relate to cost centers and units. It involves preparing statistical data, applying cost control methods, and determining the profitability of activities. Cost accounting helps with ascertaining, estimating, and controlling costs, reducing costs, setting selling prices, facilitating financial statements, and providing a basis for operating policies.
Cost accounting
Cost accounting deals with determining the costs of products and services by recording, classifying, and analyzing expenses and revenues. It provides information internally for cost control and decision making, but does not depict the overall financial position of the company. Some limitations of cost accounting include that it is not an exact science, there is no uniformity in procedures, and it can be an expensive system to implement for some businesses.
Cost accounting
Cost accounting is the process of collecting, assigning, and evaluating costs to products and services to understand where a company earns and loses money. It provides input for managerial decision making regarding future profits. Cost accounting objectives include determining selling prices, controlling costs, providing information for decisions, ascertaining costing profit, and facilitating financial statements preparation. It is important for management to determine product costs, facilitate planning and control, eliminate waste, provide estimates and identify unprofitable activities. Cost accounting also benefits employees through incentive plans.
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Cost accounting is the process of identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating information about the costs of products, services, or activities. It provides information to management for planning and control, cost analysis and reductions, decision-making, and profitability analysis. The document outlines the meaning, objectives, advantages, and disadvantages of cost accounting. The key advantages are that it helps measure efficiency, identify profitable and unprofitable activities, set prices, guide cost reductions, and provide information for planning. The main disadvantages include that cost accounting systems are expensive to implement and maintain, complex, not applicable to all businesses, and lack complete accuracy and uniformity.
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This document discusses cost accounting and the classification of costs. It explains that cost accounting involves classifying, recording, and allocating expenditures to determine the costs of products and services. There are three main elements of cost: material cost, labor cost, and overhead. Overhead includes indirect materials, indirect labor, and other expenses that cannot be directly traced to a product. The document then describes different ways to classify overhead, such as by function, behavior, element, or controllability. It also explains that overhead must be allocated to production and service departments.
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Cost accounting is the process of measuring and recording the financial value of resources used in the production of goods and services. It begins with recording costs incurred and ends with controlling costs. An effective cost accounting system has several essential characteristics including suitability, comparability, simplicity, flexibility, accuracy, and clearly defined cost centers. Cost accounting provides management with detailed cost information to control current operations, plan for the future, evaluate product profitability, set prices, and make other important business decisions.
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This document provides an overview of a course on Managerial and Cost Accounting. The course aims to introduce basic accounting concepts and how managerial accounting helps managers make better decisions. Key topics covered include the role of management accountants, cost terminology, income statements, cost-volume-profit analysis, job order costing, process costing, and decision making using relevant information. Assessment methods include midterm exams, exercises, and case studies. The course contents are broken down into 27 sessions covering these various cost accounting principles and techniques.
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This document defines cost accounting and outlines its key objectives and terminology. Cost accounting is the process of recording, classifying, and summarizing costs to determine the costs of products/services, plan and control costs, and provide information to management for decision making. The objectives of cost accounting include ascertaining, estimating, controlling, and reducing costs to determine selling prices and facilitate financial reporting. Cost accounting provides advantages like cost classification, determining adequate selling prices, and controlling expenses. However, it also has limitations like using estimates and not including all income/expenses.
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This document provides an overview of cost accounting, including definitions, objectives, key terms, and differences from financial accounting. It defines cost accounting as the process of recording, classifying, and analyzing costs to provide management with information to control costs and make decisions. The objectives of cost accounting are to ascertain costs, control costs, provide information for decision making, and determine selling prices. Key terms explained include cost unit, cost centre, and types of each. Differences between cost and financial accounting are outlined across areas like purpose, statutory requirements, and cost analysis capabilities.
Introduction to cost accounting
This document defines key concepts in cost accounting including cost, costing, cost accounting, cost estimation, cost ascertainment, cost allocation, cost apportionment, cost control, cost reduction, absorption costing and others. It explains the objectives and functions of cost accounting as well as the significance and limitations. Components of cost are defined including direct materials, direct labor, factory overheads, administrative overheads and selling overheads. The differences between cost unit and cost center as well as cost estimation and cost ascertainment are also summarized.
Cost Accounting
Cost accounting is defined as a systematic process for recording and reporting the measurement of costs of manufacturing goods and services in total and in detail. It includes methods for identifying, classifying, allocating, aggregating, and reporting costs and comparing them to standard costs. Cost accounting provides management with detailed cost information needed to control current operations and plan for the future. While cost accounting information is also used in financial accounting, its primary function is for use by managers in decision-making. Cost accounting focuses on computing costs rigorously for cost control and reduction and reports internally, whereas financial accounting analyzes transactions, adheres to reporting standards, and reports externally.
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This document discusses the evolution and importance of cost accounting. It outlines the historical development of cost accounting from its origins in bookkeeping through modern developments. Key points include Charles Babbage emphasizing the need for cost accounting in 1830, the establishment of modern factory cost accounting before WWI, and the extension of cost accounting techniques to distribution in the 1930s. The document also covers different costing methods like job costing, process costing, and departmental costing. It discusses how cost accounting helps management with pricing decisions, estimates, cost control, productivity analysis, and inventory management. Overall, the document provides an overview of the history and applications of cost accounting.
Introduction to cost accounting
Gives an idea regarding cost accounting, its nature , objectives, limitations. Also helps to understand the requirements of a good costing system.
Advantages of Cost Accounting
Cost accounting provides several key advantages for businesses. It guides businesses in reducing prices when necessary, such as during economic downturns, by properly assessing costs. Cost accounting also provides information needed for proper production planning and determining whether to expand production of certain products. Additionally, it identifies profitable and unprofitable business activities by comparing the cost of each product or job to the price obtained. Finally, cost accounting enables businesses to measure, maintain, and improve efficiency through comparisons and analyzing differences.
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This document provides an introduction to cost accounting, including definitions and key concepts. It discusses the meaning of costing, cost accounting, and cost accountancy. It outlines the differences between costing and cost accounting. It also covers the evolution and development of cost accounting, objectives of cost accounting, advantages and limitations of cost accounting, and differences between financial and cost accounting. Finally, it discusses general principles of cost accounting and various types/techniques of costing such as historical costing, absorption costing, marginal costing, uniform costing, standard costing, and job costing. The document provides a high-level overview of cost accounting concepts and terminology in under 3 sentences.
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The document discusses the objectives of cost accounting. It lists the main objectives as ascertaining costs, fixing selling prices, proper recording and presentation of cost data to management. Some key specific objectives mentioned include:
- Ascertaining the cost per unit of different products and providing a correct analysis of costs by process, operations, and elements.
- Disclosing sources of wastage and preparing reports to control wastage.
- Providing data to guide price fixing and ascertain profitability of products.
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3伦敦大学|学院毕业证成绩单电子版做好以后发送给您确认；
4伦敦大学|学院毕业证成绩单电子版您确认信息无误之后安排制作成品；
5伦敦大学|学院成品做好拍照或者视频给您确认；
6快递给客户（国内顺丰国外DHLUPS等快读邮寄）。吃吃地笑山娃很精神越逛越起劲父亲却越逛越疲倦望着父亲呵欠连天的样子山娃也说困了累了回家吧小屋闷罐一般头顶上的三叶扇彻夜呜呜作响搅得满屋热气腾腾也搅得山娃心烦意乱父亲一上床就呼呼大睡山娃却辗转反侧睡不着山娃一次又一次摸索着爬起来一遍又一遍地用暖乎乎的冷水擦身往水泥地板上一勺一勺的洒水也不知过了多久山娃竟迷迷糊糊地睡着了迷迷糊糊地又闻到了闹钟刺耳的铃声和哐咣的关门声待山娃醒来时父亲早已上班去了床头总们
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
永久可查学历认证【微信：A575476】【美国新罕布什尔大学(unh)毕业证成绩单Offer】【微信：A575476】（留信学历认证永久存档查询）采用学校原版纸张、特殊工艺完全按照原版一比一制作（包括：隐形水印，阴影底纹，钢印LOGO烫金烫银，LOGO烫金烫银复合重叠，文字图案浮雕，激光镭射，紫外荧光，温感，复印防伪）行业标杆！精益求精，诚心合作，真诚制作！多年品质 ,按需精细制作，24小时接单,全套进口原装设备，十五年致力于帮助留学生解决难题，业务范围有加拿大、英国、澳洲、韩国、美国、新加坡，新西兰等学历材料，包您满意。
【业务选择办理准则】
一、工作未确定，回国需先给父母、亲戚朋友看下文凭的情况，办理一份就读学校的毕业证【微信：A575476】文凭即可
二、回国进私企、外企、自己做生意的情况，这些单位是不查询毕业证真伪的，而且国内没有渠道去查询国外文凭的真假，也不需要提供真实教育部认证。鉴于此，办理一份毕业证【微信：A575476】即可
三、进国企，银行，事业单位，考公务员等等，这些单位是必需要提供真实教育部认证的，办理教育部认证所需资料众多且烦琐，所有材料您都必须提供原件，我们凭借丰富的经验，快捷的绿色通道帮您快速整合材料，让您少走弯路。
留信网认证的作用:
1:该专业认证可证明留学生真实身份
2:同时对留学生所学专业登记给予评定
3:国家专业人才认证中心颁发入库证书
4:这个认证书并且可以归档倒地方
5:凡事获得留信网入网的信息将会逐步更新到个人身份内，将在公安局网内查询个人身份证信息后，同步读取人才网入库信息
6:个人职称评审加20分
7:个人信誉贷款加10分
8:在国家人才网主办的国家网络招聘大会中纳入资料，供国家高端企业选择人才
→ 【关于价格问题（保证一手价格）
我们所定的价格是非常合理的，而且我们现在做得单子大多数都是代理和回头客户介绍的所以一般现在有新的单子 我给客户的都是第一手的代理价格，因为我想坦诚对待大家 不想跟大家在价格方面浪费时间
对于老客户或者被老客户介绍过来的朋友，我们都会适当给一些优惠。
选择实体注册公司办理，更放心，更安全！我们的承诺：可来公司面谈，可签订合同，会陪同客户一起到教育部认证窗口递交认证材料，客户在教育部官方认证查询网站查询到认证通过结果后付款，不成功不收费！
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Introduction to cost accounting
- 1. Introduction to Cost Accounting Fiaz Ahmad School of Commerce and Accountancy Minhaj University Lahore Punjab Pakisatn 5/1/2018Fiaz Ahmad from School of Commerce and Accountancy MInhaj University Lahore 1
- 2. What is cost Accounting: Cost: • Cost is ‘measurement in monetary terms of the amount of resources used for the purpose of production of goods or rendering services. Cost Accounting: “Accounting for costs classification and analysis of expenditure as will enable the total cost of any particular unit of production to be ascertained with reasonable degree of accuracy and at the same time to disclose exactly how such total cost is constituted”. 5/1/2018Fiaz Ahmad from School of Commerce and Accountancy MInhaj University Lahore 2
- 3. Objectives of Cost Accounting: To ascertain the Costs under different situations using different techniques and systems of costing To determine the selling prices under different circumstances To determine and control efficiency by setting standards for Materials, Labor and Overheads To determine the value of closing inventory for preparing financial statements of the concern To provide a basis for operating policies which may be determination of Cost Volume relationship, whether to close or operate at a loss, whether to manufacture or buy from market, whether to continue the existing method of production or to replace it by a more improved method of production...etc. 5/1/2018Fiaz Ahmad from School of Commerce and Accountancy MInhaj University Lahore 3
- 4. Nature of Cost Accounting: Cost accounting is a branch of knowledge: cost accounting is one of the important branch of knowledge, i.e., a discipline by itself. It is an organized body of knowledge consisting of its own principles, concepts and conventions. Cost accounting is a science: Cost accounting is a science as it is a body of systematic knowledge relating to not only cost accounting but relating to a wide variety of subjects such as law, office practice and procedure, data processing, production and material control, Cost accounting is an art: In the sense it requires the ability and skill on the part of cost accountant in applying the principles, methods and techniques of cost accountancy to various management problems Cost accounting is a profession: A large number of students have enrolled in these institutes to obtain costing certificates and memberships for earning their livelihood. Association of Accountants (NAA) in USA. The Institute of Cost and Management Accountants in UK. 5/1/2018Fiaz Ahmad from School of Commerce and Accountancy MInhaj University Lahore 4
- 5. Scope of Cost Accounting: Cost Ascertainment: The main objective of Cost Accounting is to find out the Cost of product / services rendered with reasonable degree of accuracy. Cost Accounting: It is the process of Accounting for Cost which begins with recording of expenditure and ends with preparation of statistical data. Cost Control: It is the process of regulating the action so as to keep the element of cost within the set parameters. Cost Reports: This is the ultimate function of Cost Accounting. These reports are primarily prepared for use by the management at different levels. Cost Audit: Cost Audit is the verification of correctness of Cost Accounts and check on the adherence to the Cost Accounting plan. Its purpose is not only to ensure the arithmetic accuracy of cost records but also to see the principles and rules have been applied correctly. 5/1/2018Fiaz Ahmad from School of Commerce and Accountancy MInhaj University Lahore 5
- 6. Thank you so much Any Question…???? 5/1/2018Fiaz Ahmad from School of Commerce and Accountancy MInhaj University Lahore 6