AIOU SOLVED ASSIGNMENT 1 CODE 462 COST ACCOUNTING
Aiou solved assignment 1 for course code 462 cost accounting for B.Com students for autumn semester 2015 and spring 2016. Cost accounting is the branch of accounting. Cost accounting means classifying, recording and allocation of expenditure for the determination of the cost and products or services, and for the presentation of suitably arranged data for purposes of control, and guidance of the management. It includes the ascertainment of the cost of every order, job, contract, process, service or unit, as may be appropriate. It deals with the cost of production, selling and distribution. Cost accounting can be defined as: ”Cost Accounting is collection, processing and evolution of operating data e.g. cost of products, processes, jobs, quantities of material consumed, labor time used etc for internal planning and control as well as for external reporting.”
Institute of Cost and Management Accountants of U.K. defined Cost Accounting as:-
“The application of accounting and costing principles, methods and techniques in the ascertainment of costs and analysis of savings and for excesses as compared with previous experiences or with standards.
CHARACTERISTICS OF A GOOD COSTING SYSTEM:-
An ideal costing system provides the right and timely information’s to the management at the right time and right direction to take the right decision. A good costing system must contain the following characteristics to function properly:- Simplicity, suitability, flexibility, economical, comparable, less clerical work, control, effective wage system, uniformity, departmentalization of expenses, reconciliation.
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