COST ACCOUNTING

MEANING- Cost accounting is the process of

recording, classifying, analyzing,
summarizing, and allocating costs
associated with a process, and
then developing various courses of
action to control the costs.
APPLICATIONS OF COST ACCOUNTING-

1-Cost Accounting in Financial

Institution: Cost Accounting operation is a key
factor in the successful performance of a financial institution.
Cost accounting techniques serve as a valuable
management tool that helps identify organizational
strengths and control performance.
2- Helps In Control Of Cost-It helps in the control of material cost
labour cost and overheads by using different techniques Of control such as
Standard costing and budgetary costing.
3-It Helps In Decision Making- It helps the management in making
various decision Such as-
• Whether to retain or replace an existing Machine.
• Whether to accept order below cost or not.
• Whether to shut down or Continue operations.
• 4- Cost Accounting Helps In Cost Reduction- It helps in
the introduction of cost reduction programme and finding out
new and improved method To reduce costs.
• 5-Helps In Measurements Of Efficiency-It helps in
measurements of efficiency of operations through
establishment of standard.