ECONOMICS

Detailed explanation-1: -True Cost Accounting (TCA) is a new way of identifying the real costs of a specific product or service. TCA calculates not only the direct costs like raw materials and labour, but also the effects on the natural and social environment in which a company operates.

Detailed explanation-2: -Continuous operation costing is used where the goods or services being costed are the result of continuous or repetitive operations or processes. Costs for a financial period are collected for the particular operation or process and divided by the number of units produced in the period to give an average cost per unit.

Detailed explanation-3: -Cost accounting is a process of assigning costs to cost objects that typically include a company’s products, services, and any other activities that involve the company. Cost accounting is helpful because it can identify where a company is spending its money, how much it earns, and where money is being lost.

Detailed explanation-4: -It involves the ascertainment of the cost of every job, order, product, process or service.