COST ACCOUNTING : AN INTRODUCTION
Cost Accounting is the classifying, recording, and appropriate allocation of expenditure for the determination of the costs of products or services, and for the presentation of suitably arranged data for the purpose of control and guidance of management. It includes the ascertainment of the cost of every order ,job contract, process, service or unit as many be appropriate. It deals with the cost of production, selling, and distribution. It is thus the provision of such analysis and classification of expenditure as will enable the total cost of any particular unit of production or service to be ascertained with reasonable degree of accuracy and at the same ...view middle of the document...
2. Cost system: Systems and procedures are devised for proper accounting
3. Cost ascertainment: Ascertaining cost of products, processes, jobs,
services, etc., is the important function of cost accounting. Cost
ascertainment becomes the basis of managerial decision making such
as pricing, planning and control.
4. Cost Analysis: It involves the process of finding out the causal factors
of actual costs varying from the budgeted costs and fixation of
responsibility for cost increases.
5.Cost comparisons: Cost accounting also includes comparisons between
cost from alternative courses of action such as use of technology for
production, cost of making different products and activities, and cost
of same product/ service over a period of time.
6. Cost Control: Cost accounting is the utilisation of cost information for
exercising control. It involves a detailed examination of each cost in
the light of benefit derived from the incurrence of the cost. Thus, we
can state that cost is analysed to know whether the current level of...