Question

cost ascertainment involves​

Answer 1

Answer:

Cost ascertainment is the process of determining costs on the basis of actual data. Hence, the computation of historical cost is cost ascertainment while the computation of future costs is cost estimation. Both cost estimation and cost ascertainment are interrelated and are of immense use to the management.

Answer 2

Concept :

Cost ascertainment is the process of determining costs on the basis of actual data. The primary objective of cost accounting is ascertainment of cost.

Explanation :

It (enables) the management to ascertain the cost of product, job, contract, service or unit of production so as to develop cost standard. Cost ascertainment involves computation of historical cost like the cost which has already been incurred.Both cost estimation and cost ascertainment are interrelated and are of immense use to the management. Different methods are there to ascertain cost depending upon the needs of individual methods like job costing, contract costing, process costing, operating costing etc.

To Ascertain Cost – Costing aims at ascertainment of the cost of manufacturing goods in terms of both – the total production as well as a single unit manufactured. This is done by using various methods to suit different situations and products. Such cost ascertained becomes the basis of managerial decisions.

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