ECONOMICS

Detailed explanation-1: -Cost ascertainment: The primary objective of cost accounting is to determine the cost of production of every unit, job, operation, process, department or service. The technique of ascertaining cost is known as „Costing‟. In order to determine cost, all the expenses are accumulated, classified and analysed.

Detailed explanation-2: -Cost Ascertainment: It refers to methods and processes involved in calculating cost actually incurred on the basis of actual data shown in cost records. It involves computation of historical cost i.e. the cost which has already been incurred.

Detailed explanation-3: -Cost Ascertainment for materials is the process of identifying cost incurred or paid to acquire raw materials needed for the production of a product.

Detailed explanation-4: -Some examples of such Ascertainment costs are : packing, carriage, insurance, freight outwards, etc. On this basis costs are divided into (i) direct costs, and (ii) indirect costs. Direct Costs: Direct costs refer to expenses which can be directly identified with a product, job or process.