COST ACCOUNTING
COST BOOK KEEPING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Integrated systems save time and administrative effort.
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Integrated systems maintain two separate sets of accounts:one for financial accounts and one forcost accounts.
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Integrated systems avoid the need for periodic profit reconciliations.
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Detailed explanation-1: -Accounting or Cost Control System. While non-integrated system of accounting necessitates reconciliation between financial and cost accounts, no reconciliation between two sets of accounts is required under integrated accounting.
Detailed explanation-2: -An integrated accounting system is a type of software that combines major financial accounting functions into one application. Replacing several discrete systems or programs eliminates the need for separate books or records for ordering, costing and other management accounting purposes.
Detailed explanation-3: -Integrated accounting allows you to bring together your business systems so that they work together to improve the flow of information and reduce your operational costs. The benefits of an integrated accounting system can add up to a radical transformation of your finance function.
Detailed explanation-4: -The important advantages of integrated accounting are: 1. The integral accounting i.e., adoption of one set of books is simple and economical because duplication of work is eliminated. 2. Clerical cost can be reduced, since duplication of work is eliminated.