Day: May 7, 2021

The general fundamental principles of ascertaining costs are the same in every system of cost accounting, but the methods of analysis and presenting the costs vary from industry to industry. Different methods are used because business enterprises vary in their Read More …

A cost accountant has to ascertain cost by cost centre or cost unit or by both. Cost Centre According to the Chartered Institute of Management Accountants, London, cost centre means, “a production or service location, function, activity or item of Read More …

The different bases of cost classification are: (1) By time (Historical, Pre-determined). (2) By nature or elements (Material, Labour and Overhead). (3) By degree of traceability to the product (Direct, Indirect). (4) Association with the product (Product, Period). (5) By Read More …

The Scope of Cost Accounting Is Very Wide and Includes: (a) Cost Ascertainment: The main function of cost accounting is the ascertainment of cost of product or services rendered. It includes collection, analysis of expenses and measurement of production at Read More …