Costing is the technique of ascertaining costs. It determines the cost of doing something, i.e., the cost of manufacturing an article, rendering service, or performing a function. Cost Accounting is a broader term, in that it tries to determine the costs through a formal system of accounting. It, thus, includes Read more…
Cost Accounting was basically a 20th-century creation, to make up the deficiencies of financial accounts. Cost accounting accounts for the costs of a product, a service or an operation. It is concerned with the actual costs incurred and the estimation of future costs. Cost accounting is a procedure whereby costs Read more…
Contract costing is one of the variations of specific order costing. It is employed to ascertain cost and profit of did vidum contracts undertaken. A ‘contract’ is the cost unit. It is similar to job costing but they differ basically in the aspects of size and duration. The method Read more…
The major differences between Financial Accounting & Cost Accounting are the following Financial accounting Cost accounting 1.Objective Prepare profit and loss A/c & balance sheet report the owners and outsiders Provide cost information to the management for decision making 2. Legal requirement Financial records are maintained as per the requirement Read more…
Objectives/purposes/functions/aims of cost accounting Main objectives or purposes or functions or aims of cost accounting are: Cost finding or cost ascertainment Control of cost Reduction of cost Fixation of selling price Providing information for framing business policy Cost finding or cost ascertainment : The primary objective of Read more…