Course Title: Cost Accounting

Course Code: 314

Course Teacher:
Dr. Mohammed Belal Uddin, ACMA
Professor
Department of Accounting and Information
Systems
Comilla University
• Discussion about syllabus
 Limitations of Financial Accounting

• 1. Historical in nature
• 2. No classified cost figures
• 3. Trading results in total
• 4. Price fixation difficult
 Limitations of Financial Accounting
• 5. No distinction of expenses
• 6. No safeguard against material losses
• 7. No control over labor costs
• 8. Lack of scope for performance
evaluation
 MANUFACTURING CONCERN

• Manufacturing Concern is an entity that

derives its products for sale, thereby
revenue, through the direct manufacture of
those products.
• Manufacturing concerns produce woolens,
agricultural and industrial machinery,
bricks, chemicals, and furniture.
 Manufacturing Activity

• Manufacturing activities that are usually done are

processing raw materials or raw products into
semi-finished products or finished products that
are ready to sell to consumers or customers. If
there is no production in a manufacturing
company, it is impossible for a manufacturing
company to run.
 Characteristics of Manufacturing
Company Activities
• The manufacturing industry is an industry that
focuses on one business to create products from raw
materials to finished products or semi-finished
products to finished products. The characteristics are:
• 1. Income Comes from Sales
• 2 Have a Physical Inventory
• 3. Manufacturing Activity
• 4. Production Costs Include Raw Material Cost,
Labor Cost, and Overhead Cost
 Cost Accounting
• Cost accounting provides management with detailed
records of the costs relating to products and
operations. Cost accounting refers to the process of
determining and accumulating the cost of some
particular product or activity.
• Cost accounting covers classification, analysis, and
interpretation of costs. The cost so determined and
accumulated may be the estimated future costs for
planning purposes or actual costs for evaluating
performance.