Question

Question 12:
To control the cost of
production and distribution is
the main field of:
(A) Financial Accounting
(B) Cost Accounting
(C) Auditing,
(D) None of these​

Answer 1

Answer:

Cost Control is a process in which we focus on controlling the total cost through competitive analysis. It is a practice which works to align the actual cost in agreement with the established norms. It ensures that the cost incurred on production should not go beyond the pre-determined cost.

Answer 2

To control the cost of production and distribution is the main field of (B) Cost Accounting.

Different fields of Accounting:

• The accounts as a subject is divided into three main fields namely financial accounting, cost accounting, and auditing.
• Starting with costing or cost accounting, it is a technique to record or analyze costs and report them to the management. It is simply a process of recording, classifying and allocating, reporting, and controlling costs.
• The main focus is to reduce and minimize the total cost of production of the firm. So the main field of cost accounting is to control costs related to production and distribution.
• Whereas, financial accounting is related to preparing financial statements for the stakeholders, management, government, public, etc. It is wholly recording the transactions and preparing all statements.
• Lastly, auditing or audit is the checking or evaluating one's accounts after it has been prepared. It is related to inspection and reporting on how many of the records or reports are correct and true.

Thus, costing or cost accounting is the only field related to costs.

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