UNIT-1 INTRODUCTION ( COST ACCOUNTING)
SYNOPSIS: ELEMENTS OF COST ( THEORY & PROBLEMS IN COST SHEET) MATERIAL PURCHASE PROCEDURE STORAGE OF MATERIALS ( INCLUDING PROBLEMS) METHODS OF INVENTORY CONTROL METHODS OF PRICING OF ISSUES ( INCLUDING PROBLEMS) LABOUR- CLASSIFICATION & ACCOUNTING FOR LABOUR COST METHODS OF REMUNERATION ( INCLUDING PROBLEMS) OVERHEADS-MEANING, CLASSIFICATION, ALLOCATION, APPORTIONMENT AND ABSORPTION ( INCLUDING PROBLEMS) Introduction: Cost : Cost is the amount incurred for the production and distribution of the product. It does not include income tax, interest on capital, preliminary expenses, dividends, goodwill, bad debts etc. Cost Accounting : Recording of cost-related information. Costing : Costing is the method or technique with the help of which cost can be ascertained. Definition: Cost accounting is defined as a system of recording in accounts the materials used and labour employed in the manufacture of a certain commodity/ on a particular job. Objectives : Ascertain...
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