Monday, July 16, 2018


COST: Cost is commonly define as ' sacrificed  resources'  for a particular things . If we buy a watch for Rs 2000 , a number of rupees are considered to be the cost of that watch .Here 2000 rupees are sacrificed to obtained that watch.

COSTING : Cost is a term whereas ' costing is a process of  determining the cost . It may be called a technique for ascertaining the cost of the production of any product or service in the business organisation .

COST ACCOUNTING : Cost accounting is basically the next step of costing . Cost accounting primarily deals with cullaction of relevent of  cost data for interpretation and presentation for various problem of management .Cost accounting account for the cost of product or service .It is define as, ' the establishment of budget , standard cost and actual cost for production , process , activities  and the analysis of variances , profitability or the social use of funds "'. 

 OBJECTIVE OF COST ACCOUNTING :Objective of cost accounting can be summarized as under---------

1. To ascertain the cost of production as per unit basis , for e.g. cost per unit , cost per ton , cost per litter  etc .

2. cost accounting enables to determine the cost of production on the scientific basic and it helps to fixed the selling price .

3. cost accounting helps to cost control and cost reduction .

4. cost accounting also helps in locating wastage , inefficiency and other loopholes in the production process . 

5. cost accounting helps in presentation the relavent data of the management which helps in decision making . 

6. cost accounting also helps in estimation of costs for the feature. 

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