An Overview of Cost & Management Accounting | PAPER III – ACCOUNTING & FINANCIAL MANAGEMENT FOR BANKERS | MODULE D: TAXATION AND FUNDAMENTALS OF COSTING
An Overview of Cost & Management Accounting An Overview of Cost & Management Accounting 1. Introduction to Cost Accounting Cost Accounting is the process of recording, classifying, analyzing, summarizing and allocating costs associated with a process, and then developing various courses of action to control the costs. It helps businesses determine the actual cost of production or service. Evolution: Cost Accounting emerged during the industrial revolution when manufacturing became more complex. The focus was to determine accurate production costs to set competitive selling prices. Objectives: Ascertain cost of product/service Cost control and cost reduction Assist in decision-making Scope: It includes cost computation, cost reduction, budgeting, and performance evaluation of cost centers. 2. Concepts and Classification of Cost Direct Cost: Directly attributable to a product (e.g., raw material) ...