Cost accounting has been combined with two words ,'cost and ' accounting ' . The term cost denotes the total of all expenditures involved in the process of production . Accounting , on the other hand , collects and maintain financial records of each income and expenditure and makes the information about it available to the concerned officials . Thus , cost accounting is an art and science of recording , classifying and analyzing the cost involved in raw materials and labor used in the process of production .cost accounting helps to ascertain the cost per unit , cost per process ,cost per batch cost per department and selling price of a production .
The information obtained from cost accounting may be used for internal as well as external purpose .
Some prominent writers have given their concept of cost accounting . some of the definitions given by them have been reproduced hereunder :
'' costing is the classifying ,recording and appropriate , allocation of expenditure for the determination of the cost of production or service and for the presentation of suitable arranged data for purposes of control and guidance of management .'' Harold j. Weldon.
No comments:
Post a Comment