GENERAL KNOWLEDGE

Detailed explanation-1: -The cost concept demands all assets to be recorded in the books of accounts of the prices at which they were bought. This involves the cost incurred for transportation, installation, and acquisition.

Detailed explanation-2: -The cost sheet is prepared to ascertain cost of product/job/operation or to give quotations or to determine tender price for supply of goods or providing service. A cost sheet helps in the determination of cost per unit and in the fixation of selling price of the product.

Detailed explanation-3: -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-4: -1. Cost Ascertainment: finding out the specific and precise total and unit costs of products and services. 2. Cost Presentation: reporting cost data to various levels of management with a view to facilitate decision making.

Detailed explanation-5: -The objective of the cost accounting is to determine the methods by which expenditure on materials, wages and overhead are recorded, classified and allocated. This is necessary so that the. cost of products and services may be accurately ascertained.