A PRESENTATION ON

COST ACCOUNTING
Presented by:
Saurauv Thakuria
Rupesh Kumar Choudhary
Rezaul K.Ahmed
Reginald H. Khyriem
Sapina Yasmin
Rose Christine M. Kharsyntiew
WHAT IS COST
ACCOUNTING
Scope of Cost Accounting
1. Cost ascertainment.
2. Cost accounting.
3. Cost control.
OBJECTIVES
 Ascertainment and analysis of cost
and income by product, function and
responsibility.
 Accumulation and utilization of cost
data for control purposes to have the
minimum possible cost consistence
with maintenance of quality.
 Providing useful data to management
for taking decisions.
PRINCIPLES
 Cause-effect relationship.
 Charge of cost only after its incurrence .
 Cost accounting should ignore the
convention of prudence.
 Past cost should not form part of future
costs.
 Exclusion of abnormal costs from cost
accounts.
 Principle of double entry should be
followed preferably.
METHODS OF COSTING
1)Specific order costing/job/terminal
costing:
 Job costing.
 Contract costing.
 Batch costing.
2) Operation costing/process/period
costing:
 Process costing.
 One operation (unit or output)costing.
 Service or operating costing.
 Farm costing.
 Operation (multiple) costing.
 Multiple costing.
 TYPES OR TECHNIQUES OF
COSTING
1. Uniform costing.
2. Marginal costing.
3. Standard costing.
4. Historical costing.
5. Direct costing.
6. Absorption costing.
Financial accounting vs. Cost accounting

Financial accounting treats costs very

broadly, while cost accounting does this in much
greater detail. The difference between these two
can be measure by considering the following
points:
 Purpose.
 Form of accounts.
 Recording.
 Control.
 Periodicity of reporting.
 Analysis of profit.
 Reporting of costs.
 Nature of transactions.
 Information.
 Fixation of selling price.
 Figures.
 Reference.
 Relative efficiency.
 Stock valuation.
 Type of science.
Advantages of cost accounting
 Profitable and unprofitable activities are
disclosed.
 It enables a concern to measure the
efficiency and then to maintain and
improve it.
 It provides information upon which
estimates and tenders are based.
 It guides future production policies.
 Helps in increasing profits.
 Discloses the relative efficiencies of
different workers.
 Helpful to the consumers and
government.
 Efficiency of public enterprises.
 Exact cause of increase and decrease in
profit or loss can be detected.
 Furnishes reliable data for comparing
costs in different periods.
Disadvantages
 It lacks a uniform procedure.
 There are a large number of
conventions, estimates and flexible
factors.
 Many formalities are to be observed
for getting the benefits of cost
accounting.
 The contribution of cost accounting
for handling futuristic situations has
not been much.
 CONCLUSION
Cost accounting has become a powerful
managerial method, operation research,
quantitive technique, computer aid
technique have further heighten the
scope of cost accounting.
Today cost accounting is raised to the
status of a manager partner, who can be
relate to identify and solve problem for
the purpose of attainment the
organisational objectives
THANK YOU