ECONOMICS

Detailed explanation-1: -The primary goal of cost accounting is to ascertain the cost of production for every process, department or service of a business. Costing refers to the technique of ascertaining cost. Accountants accumulate every expense and classify and analyse them to generate costing information.

Detailed explanation-2: -Cost accounting seeks to ascertain the cost of each product or job produced or undertaken by the business.

Detailed explanation-3: -cost of products and services may be accurately ascertained. Thus, the following are the main objectives of cost accounting: Ascertainment of the cost per unit of the different products that a business concern manufacturers. To correctly analyze the cost of both the process and operations.

Detailed explanation-4: -Cost accounting is a form of managerial accounting that aims to capture a company’s total cost of production by assessing the variable costs of each step of production as well as fixed costs, such as a lease expense.

Detailed explanation-5: -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.