Cost Sheet Paper
Cost Accounting
Chapter Module-1 - Introduction to Cost Accounting
Definition
Cost: - Generally cost refers to all expenses incurred in producing a product or rendering service. But, from the cost accounting point of view “Cost is a normal sacrifice of resources in the creation of product or services”.
Costing: - Costing is defined as “the technique and process of ascertaining cost of a given thing”.
According to CIMA it is defined as “the establishment of budgets, standard, costs and actual costs of operations, processes, activities or products and the analysis of variances, profitability or the social use of funds”.
Cost Accounting: - Cost accounting is defined as “the process of accounting for cost from the point at which expense is incurred or committed to the establishment of its ultimate relationship with cost centers and cost units.
The institute of Cost and Works Accountant ICWA defines “Cost accounting is the technique and process of ascertainment of cost. Cost accounting is the process of accounting for cost, which, begins with recording of expenses or the basis on which they are calculated and end with preparation of statistical data.
Cost Accountancy: - Cost accountancy is used to describe the principles, conventions, techniques and systems which are employed in a business to plan and control the utilization of its resources.
It is defined as “the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and the ascertainment of profitability. It includes the presentation of information derived there-from for the purpose of marginal decision making”.
Cost Centre: - Cost centre is defined as “a place or location or machine or person or thing for which cost can be ascertained”. It is the segment of activity or area of responsibility for which costs are accumulated”.
Cost Unit: - Cost unit is defined as “a unit of a product or service or combination of them in
Chapter Module-1 - Introduction to Cost Accounting
Definition
Cost: - Generally cost refers to all expenses incurred in producing a product or rendering service. But, from the cost accounting point of view “Cost is a normal sacrifice of resources in the creation of product or services”.
Costing: - Costing is defined as “the technique and process of ascertaining cost of a given thing”.
According to CIMA it is defined as “the establishment of budgets, standard, costs and actual costs of operations, processes, activities or products and the analysis of variances, profitability or the social use of funds”.
Cost Accounting: - Cost accounting is defined as “the process of accounting for cost from the point at which expense is incurred or committed to the establishment of its ultimate relationship with cost centers and cost units.
The institute of Cost and Works Accountant ICWA defines “Cost accounting is the technique and process of ascertainment of cost. Cost accounting is the process of accounting for cost, which, begins with recording of expenses or the basis on which they are calculated and end with preparation of statistical data.
Cost Accountancy: - Cost accountancy is used to describe the principles, conventions, techniques and systems which are employed in a business to plan and control the utilization of its resources.
It is defined as “the application of costing and cost accounting principles, methods and techniques to the science, art and practice of cost control and the ascertainment of profitability. It includes the presentation of information derived there-from for the purpose of marginal decision making”.
Cost Centre: - Cost centre is defined as “a place or location or machine or person or thing for which cost can be ascertained”. It is the segment of activity or area of responsibility for which costs are accumulated”.
Cost Unit: - Cost unit is defined as “a unit of a product or service or combination of them in