What is meant by cost and cost accounting?
Meaning of Cost Accounting Cost accounting is a method of managerial accounting which aims to capture the total production cost of a business by measuring the variable costs of each production phase as well as fixed costs, such as a lease expense.
What is cost accounting class 11?
Cost Accounting is that branch of accounting which is concerned with the process of ascertaining and controlling the cost of products or services.
Why do we use cost accounting?
Cost accounting is helpful because it can identify where a company is spending its money, how much it earns, and where money is being lost. Cost accounting aims to report, analyze, and lead to the improvement of internal cost controls and efficiency.
What is bin card in cost accounting?
In cost accounting, bin card is used to mean a document that keeps a record of the items held in stores. Bin implies a container or space to keep materials, and with each bin, a card is placed, that comprises of details of material received, issued and returned.
What are types of cost accounting?
Types of cost accounting include standard costing, activity-based costing, lean accounting, and marginal costing.
What’s the main purpose of cost accounting?
Quantify Productivity. The first important purpose of cost accounting revolves around the quantification of productivity.
What are the functions of cost accounting?
– Ascertainment of cost. Cost ascertainment is an important function played by cost accounting. – Controlling cost. Cost accounting helps the organization in controlling its cost. – Aid to management. – Setting up selling prices. – Inventory control. – Measurement of efficiency. – Discloses profitable and non-profitable activities.
Why cost accounting is used instead of financial accounting?
It’s not generally accepted in the business world. While Excel may work for your small business,it’s usually not accepted by the business world as a whole.
What are the advantages and disadvantages of cost accounting?
– Measures and improves efficiency. Ascertaining the performance of the organization and improving it is another important role played by cost accounting. – Identifies unprofitable activities. – Price Fixation. – Inventory Control. – Control cost. – Identifies reasons for losses.