Question

1. What is cost accounting?​

Answer 1

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➜Cost accounting is defined as"a systematic set of procedures for recording and reporting measurements of the cost of manufacturing goods and performing services in the aggregate and in detail.

Answer 2

ANSWER :

Cost Accounting is a specialized branch of accounting which is used to ascertain the total cost and per unit of cost of goods produced and services rendered by a business. It also estimates the cost in advance and gelps the management in exercising strict control over cost.

• According to the Chartered Institute of Management Accountants in England (CIMA), "Cost Accounting is the process of accounting for cost from the point at which expenditure is incurred or committed to establishment of its ultimate relationship with cost centres and cost units. In its widest usage, it embraces the preparations of statistical data, the application of cost control methods and the ascertainment of the profitability of activities carried or planned".

• Cost Accounting is the process of recording, classifying, summarizing, allocating as well as analyzing the different alternative measures to control costs.

• Cost Accounting gives the reliable comparison of products and services within as well as outside a business with the products and services available in the market.

• Cost Accounting is the formal mechanism by means of which the cost of products and services can be ascertained and controlled.

• Cost Accounting provides a detailed system of control for materials, labour and overhead costs with the help of standard costing and budgetary control.