Cost Accounting

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basic touch with topic of cost accounting

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COST ACCOUNTING:

COST ACCOUNTING

PowerPoint Presentation:

Cost accounting is the application of costing & cost accounting principle, methods & technique of the science, art and practice of the cost control ascertainment of profitability. It also includes the presentation of information derived for the purpose of managerial decision making. It is thus the science art & practice of a cost accountant. Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future . INTRODUCTION & MEANING

PURPOSES OR OBJECTS OF COST ACCOUNTS:

PURPOSES OR OBJECTS OF COST ACCOUNTS Ascertainment of cost. Cost control. Determination of selling price. Frequent preparation of accounts and other reports. To provide a basis for operating policy.

ESSENTIALS OF COST ACCOUNTING SYSTEM:

ESSENTIALS OF COST ACCOUNTING SYSTEM Accuracy Simplicity Elasticity Economy Comparability Periodical preparation of accounts Reconciliation with financial accounts Uniformity fair and equitable

ADVANTAGES OF COST ACCOUNTING:

ADVANTAGES OF COST ACCOUNTING

Practical Difficulties in Installing Cost Accounting:

Practical Difficulties in Installing Cost Accounting Lack of support from management. Resistance by existing accounting staff. Non-cooperation from middle and bottom level management. Lack of trained staff. Heavy expenses in installing and maintaining the system. Competition governs price and hence there is no need for costing system

CONCLUSION:

CONCLUSION Cost accounting information is designed for managers. Since managers are taking decisions only for their own organization, there is no need for the information to be comparable to similar information from other organizations. Instead, the important criterion is that the information must be relevant to decisions that managers operating in a particular environment of business including strategy make. Cost accounting information is commonly used in financial accounting information, but first concentrating in its use by managers to make decisions.

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