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Basics of cost accounting are:<\/span><\/p>\n Meaning of cost accounting, <\/span><\/p>\n Objectives of cost accounting, <\/span><\/p>\n Advantages of cost accounting, <\/span><\/p>\n Features of cost accounting, <\/span><\/p>\n Limitations of cost accounting <\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n Cost accounting is the application of accounting, costing, principles, methods, collection, classification and techniques. <\/span><\/p>\n It is used for ascertaining the cost of whole production and cost per unit. <\/span><\/p>\n Generally, it is based on estimation. It compares past or previous data at present for future purpose. <\/span><\/p>\n It contains budget, standard cost, actual cost, process, analysis, profitability, social funds etc.<\/span><\/p>\n \u00a0<\/span><\/p>\n Thus, cost accounting has the following features:<\/span><\/p>\n It is a process of accounting for cost;<\/span><\/p>\n It records income and expenditures related to the production of goods and service;<\/span><\/p>\n It provides statistical data to prepare tender and quotations;<\/span><\/p>\n It is related to cost calculation, cost controls and cost reduction;<\/span><\/p>\n It establishes a standard budget and variances or deviations;<\/span><\/p>\n It provides the right information to the right person at the right time for planning, evolution, control and decision making.<\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n Definitions of cost accounting <\/span><\/b><\/p>\n According to Professor R. N. Carter,<\/span><\/i><\/b> <\/i>\u201cCost accounting is a system of recording an account about the manufacturing of a certain commodity (goods) or a particular job.\u201d<\/span><\/i><\/p>\n \u00a0<\/span><\/i><\/p>\n According to the National Association of Accountant, USA, <\/span><\/i><\/b>\u201cA systematic set of procedure for recording, reporting and measuring of cost of manufacture goods and performing services in aggregate and in detail.\u201d<\/span><\/i><\/p>\n \u00a0<\/span><\/p>\n According to Institutes of Cost and Management Accountants, London,<\/span><\/i><\/b> <\/i>\u201cThe application of costing and cost accounting principles.\u201d<\/span><\/i><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n The main objective of cost accounting is to find out the cost of goods or service at every stage of production.<\/span><\/p>\n There are a lot of objectives, out of them here are some:<\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n The cost accounting helps to study, analyze and classify the cost of production at different levels. <\/span><\/p>\n These levels are prime cost, work cost, cost of production, cost of goods sold and total cost.\u00a0 <\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n It helps to find out total cost and cost per unit at different levels of production. <\/span><\/p>\n Management of the company can check and control the excess cost.\u00a0 <\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n Profit is the most important for a business company. <\/span><\/p>\n Cost accounting helps to find out an estimated profit.\u00a0 <\/span><\/p>\n There are two methods to find out the profit. <\/span><\/p>\n They are profit on cost and profit on sales.\u00a0 <\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n Everything of the company is depended on sales of goods or service providing. <\/span><\/p>\n Cost accounting helps to determine the selling price<\/span> of goods or service. <\/span><\/p>\n It is estimated by adding a profit percentage to the total cost. <\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n Cost accounting helps to control over wastage of materials during production. <\/span><\/p>\n More wastage increases the cost of a product. <\/span><\/p>\n Therefore, it should be controlled. <\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n Cost accounting helps to find out the idle time of labour and idle time of machines. <\/span><\/p>\n Idle time increases the cost of the product. <\/span><\/p>\n Therefore, it should be controlled.<\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n Most of the company purchases goods or services based on a tender. <\/span><\/p>\n Cost accounting supplies useful data for management to make a decision. <\/span><\/p>\n It provides data for submitting tender or quotation. <\/span><\/p>\n \u00a0<\/span><\/b><\/p>\n The audit is the system to control cost and error. <\/span><\/p>\n Cost accounting helps to organize internal audit. <\/span><\/p>\n \u00a0<\/span><\/p>\n \u00a0<\/span><\/p>\n <\/a>###########<\/span><\/p>\n Click on the link for <\/span>YouTube<\/span><\/b> videos<\/span><\/p>\n<\/td>\n<\/tr>\n Cost Reconciliation Statement <\/span><\/p>\n<\/td>\nMeaning of Cost Accounting | Concept of Cost Accounting <\/span><\/b><\/h2>\n
Objectives of Cost Accounting<\/span><\/b> <\/b><\/h3>\n
Cost classification\u00a0<\/span><\/b><\/b><\/h4>\n
Finding out the total cost<\/span><\/b><\/b><\/h4>\n
Finding out estimated profit<\/span><\/b><\/b><\/h4>\n
Determining selling price<\/span><\/b><\/b><\/h4>\n
Control wastage<\/span><\/b><\/b><\/h4>\n
Idle time<\/span><\/b><\/b><\/h4>\n
Providing data<\/span><\/b><\/b><\/h4>\n
Internal audit<\/span><\/b><\/b><\/h4>\n
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