ECONOMICS

Detailed explanation-1: -The main objective of cost accounting is to ascertain the cost of goods and services. The expenses that are incurred while producing goods or rendering services are called costs.

Detailed explanation-2: -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-3: -The cost concept is a traditional method concerning that the asset is paid on the date of purchase and is not changed year after year. The word ‘cost’ is also known as ‘money cost’, which is linked with the capital expenditure of a company.

Detailed explanation-4: -The main objective of cost accounting are ascertainment of cost, fixation of selling price, proper recording and presentation of cost data to management for measuring efficiency and for cost control and cost reduction, ascertaining the profit of each activity, assisting management in decision making process.

Detailed explanation-5: -Basic objective of cost accounting is cost ascertainment. It involves the ascertainment of the cost of every job, order, product, process or service.