1. Define Cost Accounting.

Distinguish between Cost-Accounting tad Financial Accounting

2. Describe the main purpose of cost accounting
3. Explain the important conditions for effective costing system.
4. Write a short note on the need for cost accounts.
5. What do you mean by factory organization? Draw an organization chart of aa manufacturing
organization.
6. Explain the difference between costing and cost accounting
7. Write a short note on cost accumulation
8. Write a sjort notes on the following:
(a) Cost unit
(b) Cost centre
(c) Profit centre

ANSWERS:

1. Cost accounting is the art and science of recording, categorizing, summarizing, and evaluating
expenses with the goal of cost control, cost estimates and predictions, and cost reduction,
assisting management in making sound business choices.
Financial accounting entails creating a standard set of reports for an external audience that may
include investors, creditors, credit rating agencies, and regulatory bodies. Cost accounting
entails preparing a wide range of reports required by management to run a business.
Financial accounting largely focuses on reporting a company's financial results and financial
situation. Cost accounting typically results in considerably more detailed reporting within the
organization, such as for particular items, product lines, geographical areas, customers, or
subsidiaries.
2.