222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

$show=home

Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Cost Accounting in Company - 7 Extraordinary Objectives of Cost Accounting for Bottom-Line Profits

For knowing Extraordinary Objectives of Cost Accounting for bottom-line profit , you should learn the basic fundamental of cost and costing and cost accounting and after this you can understand What Are the Extraordinary Objectives of Cost Accounting for bottom-line profit ?

Definition of Cost

Cost may be define as the price of any asset when one company purchases it or it may the expenses for getting services . So , we can say that cost is total amount which is sacrificed for getting the goods , services and assets .

In general , cost is calculated on production of goods . Total cost represents cost of raw material , cost of labour and cost of overheads after adding above we can find total cost and if we divide total numbers of units , then we can find cost per unit . [ Solution of Cost Problem link]

Definition of Costing
Costing is technique to determine the cost. It involves the process and method to classify and analysis of different expenditures.

Definition of Cost Accounting

Cost accounting is science of recording , classify , analyzing and allocation of cost to cost centers or cost unit . It also include cost control .



Cost accounting = Accounting used → { [ determine the cost + control the cost] }
Specific Order Costing
Operation Costing
Job Costing
Contract Costing
Batch Costing
Process Costing
Standard Costing
Cost Budget
Marginal Costing


Objective of Cost accounting

1. To determine the cost

It is the objective of cost accounting that cost accountant has to determine the cost because, after this cost per unit, price per unit can be calculated and product can be sold in market .

2. To analyze of cost
Under this objective , cost is calculated after analyze which is done in cost sheet by knowing different elements and writing in specific head .

3. To reduce the Wastage

Cost accounting’s main objective is to reduce the wastage , Wastage may be in material , labour cost or overhead cost . Cost accountant makes cost sheet and after this he compares it with standard cost and with this can find at where wastage are incurred and after this he can reduce it by making proper control .

4. Provide cost data
There are large no. of previous records of cost of different products are available, if cost accounting is maintained by accounting department. It can be given to other department for taking decision. It is the another objective of cost accounting .

5. Ascertain the profitability

We know that cost accounting is to determine cost and with this cost we can find profit margin

6. Control the cost

Cost accounting’s objective is to control the cost . For example Over stocking and under stocking is loss of money by using cost control techniques in stock maintaining , we can keep optimum level of stock to control the cost of stock .

7. Advicing the management

Cost accountant can advice to management for achieving the objectives of cost accounting

· At what cost , should any asset show in books of company ?
· He will suggest how many cost centers are needed for effective control over cost .
· He can solve different cost related problems in the company.

Alexander Dusty of President of Global Shop Solutions's thought on Objectives of Cost Accounting .
" cost accounting provides a richer information base for operations
management. The collection, classification, and determination of cost through
accounting becomes, then, a means by which efficiencies are discovered and
implemented. To the extent that these implementations offer a greater return on
investment, and perhaps a greater dividend to shareholders, cost accounting can
be said to truly help build the bottom-line profit.
via

Comments

: 1
  1. Tomorrow is my cost accountancy exam..and I just find your article very simple and self explanatory... Very well done

    ReplyDelete
In comment, you can give your feedback, reviews, ideas for improving content or ask question relating to written content.

 


Name

access,2,account,86,accountant,95,Accounting,683,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,Amortization,1,announcements,62,Annuity,2,assets,53,audit,47,auditing,41,Australia,2,B.Com.,22,balance sheet,87,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,6,Financial,134,financial accounting,147,Financial Statements,4,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,7,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,40,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,143,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,5,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,14,purchase,9,puzzles,2,quickbooks,2,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,219,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: Cost Accounting in Company - 7 Extraordinary Objectives of Cost Accounting for Bottom-Line Profits
Cost Accounting in Company - 7 Extraordinary Objectives of Cost Accounting for Bottom-Line Profits
Accounting Education
https://www.svtuition.org/2009/12/cost-accounting-in-company-7.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2009/12/cost-accounting-in-company-7.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy