The principal activities or tasks of Cost Accounting include:
(i) Determining costs and profit for an accounting period.
(ii) Preparing data to aid in the control, reduction or improvement of cost.
(iii) Aiding and participating in the creation and execution of budgets.
(iv) Creating inventory values for costing and pricing purposes and, at times, controlling physical quantities.
Scope of Cost Accounting:
Cost Accounting is generally considered and discussed as being applicable only to manufacturing operations. Undoubtedly, cost accounting in this field has reached its highest development. However, almost every type of financial activity can benefit from cost accounting.
In modern times, cost accounting concepts, techniques, standards, and cost controls have been applied in the field of marketing, administration, banking, insurance, public utilities, finance companies, departmental stores, hospitals, hotels, education institutions, local government agencies, transportation companies, rail roads, airlines, shipping companies, and even in professional offices, such as lawyers, doctors, teachers and accountants.
.jpg)