ECONOMICS

Detailed explanation-1: -Cost accounting is primarily concerned with accumulating information about product costs. When raw materials are received, there is no effort at this point to associate the cost of materials with specific jobs.

Detailed explanation-2: -Cost accounting is primarily concerned with gathering and analysing cost information, for internal use by managers for planning, control and decision making.

Detailed explanation-3: -Cost accounting is primarily concerned with accumulating information about product costs. A job order cost system is most appropriate when a large volume of uniform products are produced. A process cost accounting system is appropriate for similar products that are continuously mass produced.

Detailed explanation-4: -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-5: -Cost accounting is used to determine the costs incurred in the production process. It is used by the management to identify various variable and fixed costs incurred and how they can be reduced and controlled.