COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cost
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costing
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cost accounting
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cost accountancy
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Detailed explanation-1: -Costing is the technique and process of ascertaining costs.
Detailed explanation-2: -According to CIMA, England, “the technique and process of ascertaining cost is calledCosting.
Detailed explanation-3: -Cost ascertainment is the process of determining costs on the basis of actual data. Hence, the computation of historical cost is cost ascertainment while the computation of future costs is cost estimation. Both cost estimation and cost ascertainment are interrelated and are of immense use to the management.
Detailed explanation-4: -Cost Accounting is a formal mechanism of ascertaining and controlling the costs of products or services. It is thus helpful to the management in decision making which also requires the costing information.