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  • Accountancy Cost Accounting

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    Cost accounting is a branch of accounting that deals with tracking, recording, and analyzing the costs of manufacturing or producing goods and services. It provides tools to help management make decisions about costs, set prices to maximize profits, and identify ways to reduce costs. The objectives of cost accounting are to classify, record, and report on current and projected costs, analyze cost behavior, and facilitate internal decision making. Some key cost concepts include total cost, marginal cost, standard cost, conversion cost, and direct cost.

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    Define cost and cost accounting also give out objective of cost accounting.

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    Cost accounting is a branch of accounting that deals with tracking, recording, and analyzing the costs of manufacturing or producing goods and services. It provides tools to help management make decisions about costs, set prices to maximize profits, and identify ways to reduce costs. The objectives of cost accounting are to classify, record, and report on current and projected costs, analyze cost behavior, and facilitate internal decision making. Some key cost concepts include total cost, marginal cost, standard cost, conversion cost, and direct cost.

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    © All Rights Reserved
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    5 views1 page

    Accountancy Cost Accounting

    Uploaded by

    coolraja12354
    Cost accounting is a branch of accounting that deals with tracking, recording, and analyzing the costs of manufacturing or producing goods and services. It provides tools to help management make decisions about costs, set prices to maximize profits, and identify ways to reduce costs. The objectives of cost accounting are to classify, record, and report on current and projected costs, analyze cost behavior, and facilitate internal decision making. Some key cost concepts include total cost, marginal cost, standard cost, conversion cost, and direct cost.

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    12/20/2014

    CompetitiveExamsAccountancyCostAccountingExamrace

    CostandCostAccounting
    Definecostandcostaccountingalsogiveoutobjectiveofcostaccounting.
    costisdefinedasrequiredtimeorresourcesCostsaremeasuredinunitsofcurrencyby
    convention.Costmeanstoestimatetheamountofmoneyneededtoproduceaproductor
    performaservice.Costisthetotaldollarexpenditureforlabor,supplies,andmachines
    necessarytoachieveagivenobjective.Costishavingdifferentdenotationandsuchitshould
    notbeusedunlessitisqualifiedinsomeparticularway.Costmaybeprimecost,factory
    cost,andcostofproduction,costofsales.Forex,primecostincludesexpenditureon
    material,labouranddirectexpenses.Moneyspentonmaterialistermedascostofmaterial
    moneyspendonlabouristermedascostoflabourandsoon.Itisimportanttonotethat
    thereisnosuchthingasanexactcostortruecostbecausenofigureofcostistrueinall
    circumstanceandforallpurposes.Socostisnotsomethingdefinite.Acostaccountantis
    mainlyconcernedwiththefollowingcostconcepts.
    1Totalcostsummationofallitemsofexpenses
    2Marginalcostprimecostplusvariableoverhead
    3Standardcostpredeterminedcostbasedontechnicalestimateformaterial,labourand
    overheadforaselectedperiodoftime
    4Conversioncostsumtotalofdirectlabourandfactoryoverhead
    5Directcostaggregateofmarginalcostandapportionoffixedcost
    Costaccountingabranchofaccountingdealingwiththeclassification,recording,allocation,
    summarizationandreportingofcurrentandprospectivecostsandanalyzingtheirbehaviors.
    Costaccountingisfrequentlyusedtofacilitateinternaldecisionmakingandprovidestools
    withwhichmanagementcanappraiseperformanceandcontrolcostsofdoingbusiness.Itis
    theprocessofidentifyingandevaluatingproductioncosts.Thatmethodofaccountingwhich
    providesfortheassemblingandrecordingofalltheelementsofcostincurredtoaccomplish
    apurpose,tocarryonanactivityoroperation,ortocompleteaunitofworkoraspecificjob.
    Costaccountingistheprocessoftracking,recordingandanalyzingcostsassociatedwiththe
    activityofanorganization.Theinformationregardingcostofeachproductorservicewould
    enablethemanagementtoknowwhertoeconomizeoncost,howtofixprices,howto
    maximizeprofitandsoon:

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