PPT COST

COST ACCOUNTING: 

COST ACCOUNTING BY: STUDIOUS 13

INTRODUCTION: 

Business enterprises are functioning in a highly competitive environment. The major of accounting information is satisfied by Financial Accounting ,but management of every business is interested to know much more then the usual information (Internal organizational function) Financial accounting system fails to some extent to provide all these required information to management hence COST ACCOUNTING is developed to full fill this purpose. INTRODUCTION

ORIGIN OF COST ACCOUNTING: 

ORIGIN OF COST ACCOUNTING Industrial revolution in England presented a challenge to development of Accounting tools of industrial management. The increasing awareness on the part of entrepreneurs and industrial management using scientific principle leads to the development of cost techniques. Cost accounting started as the part of Financial accounting. In 20 th century Cost accounting methods begin in India. Government of India made Cost accounting compulsory by the “COST AND WORK ACCOUNTANTS ACT, 1959” and established a statutory institute styled as “Institute of cost and works Accountants of India”.

DEFINE:: 

DEFINE : COST : It is the total of all expenses incurred , whether paid or outstanding, in the manufacturing and sale of product or those incurred in giving service. COSTING : It is simply cost finding. It is process, technique and procedure of ascertaining the cost. It include all the principles, rules and regulations of calculating cost. It is dynamic in nature COST ACCOUNTING : It is the branch of accounting dealing with the classification, recording, allocating, summarization and reporting of current and prospective cost. .

OBJECTIVES:: 

OBJECTIVES : Ascertainment of cost. Control of cost. Determination of selling price. To provide basis for operating policy. Frequent preparation of account and other reports. To provide data for cost reduction. Preparation of cost estimate. Standards for measuring efficiency.

ADVANTAGES:: 

ADVANTAGES : Supplies detailed cost information. Guides in price fixation. Reveals operating efficiency. Facilitates planning. Help in decision making. Help in inventory control. Help in cost control and cost reduction. Facilitates cost comparison. Prevents fraud and manipulation.

LIMITATIONS:: 

LIMITATIONS : Expensive. More complex. Limited applicability. Not applicable to small concerns. Lack of uniformity. Lack of accuracy. Confusion regarding non cost items. Not useful for handling futuristic situation. It fails in considering social obligations.

DIFFERENCE BETWEEN FINANCIAL ACCOUNTING AND COST ACCOUNTING:: 

It covers transaction relating to certain in activity only. Its purpose is internal reporting. e .g. : management. Recording of transaction is objective. Record both historical and estimate cost. Duration can be daily, monthly, weekly. It covers accounts of whole business. It purpose is external reporting e.g.: owners, government, investors etc. Recording of transaction is subjective. Records only historical cost. Duration of reporting is on annual basis. DIFFERENCE BETWEEN FINANCIAL ACCOUNTING AND COST ACCOUNTING : FINANCIAL ACCOUNTING COST ACCOUNTING

PowerPoint Presentation: 

It fails to guide the formulation of pricing policy. Financial accounting is not sufficient to evaluate the efficiency of business. It is prepared for the purpose of profit and loss, balance sheet. Inter firm and intra firm cannot be compared. It provide adequate data for formulation pricing policy. Cost data help in evaluate the efficiency of business. It generate specific purpose like report of loss of material , variance reporting etc. We can compare inter firm and intra firm.

COST CONCEPT:: 

COST CONCEPT: Direct cost and Indirect cost. Fixed cost, Variable cost and Semi variable cost. Controllable cost and Uncontrollable cost. Normal cost and Abnormal cost. Special types of cost : Opportunity cost, Differential cost and Sunk cost.

group members: 

Meetu Singh Manila Singh Brototi Datta Yesudas Fernandes Nikhil Pandey Chintan Patel Keyur Belani Dhanyabad Singh Hardik Desai Vipul Chauhan Neetu Dubey Shreejesh Nair group members

THANK YOU: 

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