{"id":2739,"date":"2019-11-22T11:09:00","date_gmt":"2019-11-22T11:09:00","guid":{"rendered":"https:\/\/commerceiets.com\/?p=2739"},"modified":"2019-11-22T11:09:00","modified_gmt":"2019-11-22T11:09:00","slug":"scope-of-cost-accounting-pdf","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/scope-of-cost-accounting-pdf\/","title":{"rendered":"SCOPE OF COST ACCOUNTING PDF"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_72 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/scope-of-cost-accounting-pdf\/#SCOPE_OF_COST_ACCOUNTING_PDF\" title=\"SCOPE OF COST ACCOUNTING PDF\">SCOPE OF COST ACCOUNTING PDF<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/scope-of-cost-accounting-pdf\/#This_post_contains_the_Scope_of_Cost_Accounting_Pdf_file\" title=\"This post contains the Scope of Cost Accounting Pdf file\">This post contains the Scope of Cost Accounting Pdf file<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1 class=\"has-text-align-center wp-block-heading\" id=\"scope-of-cost-accounting-pdf\"><span class=\"ez-toc-section\" id=\"SCOPE_OF_COST_ACCOUNTING_PDF\"><\/span>SCOPE OF COST ACCOUNTING PDF<span class=\"ez-toc-section-end\"><\/span><\/h1>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"this-post-contains-the-scope-of-cost-accounting-pdf-file\"><span class=\"ez-toc-section\" id=\"This_post_contains_the_Scope_of_Cost_Accounting_Pdf_file\"><\/span>This post contains the Scope of Cost Accounting Pdf file <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"has-medium-font-size\"><a href=\"https:\/\/commerceiets.com\/cost-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Cost Accounting (opens in a new tab)\">Cost Accounting<\/a> is an art or process of recording, analyzing and classifying of expenditure for the purpose of product costing or service costing, ascertainment of profitability, operational planning and cost control. It is a forward looking approach which is related to the recording, analyzing and classifying of expenditure with the objective of ascertaining the total and per unit cost of product or service. The scope of cost accounting is very wide and includes the following segments:<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"720\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide16.jpg\" alt=\"SCOPE OF COST ACCOUNTING\" class=\"wp-image-2741\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide16.jpg 960w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide16-300x225.jpg 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/Slide16-768x576.jpg 768w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><figcaption>SCOPE OF COST ACCOUNTING PDF<\/figcaption><\/figure>\n\n\n\n<p class=\"has-medium-font-size\"><strong>COST ASCERTAINMENT<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">The sphere of cost accounting comprises cost ascertainment\nfirstly. Cost ascertainment means determining the cost incurred in producing\nany product. The cost ascertainment includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Collection of expenses<\/li><li>Analysis of expenses<\/li><li>Measurement of production<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">The cost may be ascertained by following ways:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Activity Based Costing<\/strong> in which each activity is taken as fundamental cost object.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Unit costing<\/strong> which is adopted to ascertain the total cost and also per unit cost by making a detailed analysis of different elements of cost.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Job Costing<\/strong> method as per which costs is ascertained for the particular job or work.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Batch Costing<\/strong> which is used when products are produced in batches and cost is ascertained for each batch separately.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Contract Costing<\/strong> is a method of cost ascertainment of a particular contract which is non-recurring in nature. The person executing the contract is known as \u2018contractor\u2019 and the person with whom the contract is executed is known as the \u2018Contractee\u2019.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Process Costing<\/strong> is a method employed to ascertain the cost of production in industries where a product passes through different processes or stages.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Operation Costing<\/strong> represents the costing in which each cost of each operation involved in an activity is ascertained separately.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Composite Costing<\/strong> is applied to ascertain the cost of complex products manufactured by the manufacturing concerns where no single method of ascertaining cost can be applied.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Departmental Costing<\/strong> is adopted where the factory is divided into several departments and it is desired to ascertain the cost of each department than the whole concern collectively.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>COST RECORDING&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">The scope of cost accounting also includes the recording of\nthe costs. It is the process by which the costs regarding the manufacturing activities\nare being recorded in the business accounting records. It is a formal mechanism\nand involves the specialized skills and knowledge of the cost and work\naccountants. From recording point of view, the costing is of various types:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Historical Costing: <\/strong>The recording of costs after they have been incurred is known as historical costing. It provides the record to the management what has happened and thus is a post-mortem of actual costs.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Post Costing:<\/strong> Under this system, the cost is ascertained after production is completed, by analyzing financial data in such a way as will disclose the cost of the units which have been produced.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Continuous Costing: <\/strong>Under this system, cost is ascertained by recording expenditure and allocating it to production as and when the same is incurred, with the result that cost is ascertained as soon as the job is completed or even in progress.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>COST CONTROL&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"has-medium-font-size\">Cost control is the guidance and regulation of the costs by\nthe administration and management authorities. It guides the organization to\nachieve the target of the undertaking for a given period. Cost control involves\nthe following steps:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Setting up the targets for expenses and\nproduction performance<\/li><li>Measurement of the actual performance<\/li><li>Comparison of the actual performance with the\nstandard performance<\/li><li>Finding out deviations, if any<\/li><li>Taking corrective actions to remove all the\ndeviations.<\/li><\/ul>\n\n\n\n<p class=\"has-medium-font-size\">Cost control is done by following the various techniques:<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Marginal Costing: <\/strong>It is a technique of cost accounting which pays attention to the behavior of costs with changes in the volume of the output.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Budgetary Control:<\/strong> It involves the establishment of budgets relating to the responsibilities of the executives to the requirements of the policy and the continuous comparison of the actual with the budgeted results, either to secure by individual action of that policy or to provide a basis for its revision.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Standard Costing:<\/strong> Standard costing discloses the cost of deviations from standards and classifies these as to their causes, so that management is immediately informed of the sphere of operations in which remedial action is necessary.<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Variance Analysis:<\/strong> Variance analysis is a process of analyzing variances by sub-dividing the total variance in such a way that the management can assign the responsibility for off production performance. The main cost variances are: direct material variance, direct labor cost variance and overhead variance.<\/p>\n\n\n\n<p><strong>QUESTION COVERED<\/strong><\/p>\n\n\n\n<p>Give scope of cost accounting?<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>SCOPE OF COST ACCOUNTING PDF FILE<\/strong><\/p>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-eac6fb38-df1c-4a95-a2b7-c70548cd2204\" href=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/SCOPE-OF-COST-ACCOUNTING-converted.pdf\">SCOPE-OF-COST-ACCOUNTING-converted<\/a><a href=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/11\/SCOPE-OF-COST-ACCOUNTING-converted.pdf\" class=\"wp-block-file__button\" download aria-describedby=\"wp-block-file--media-eac6fb38-df1c-4a95-a2b7-c70548cd2204\">Download<\/a><\/div>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><td><strong>Also Study<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/cost-accounting\/\">Cost Accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/scope-of-cost-accounting-pdf\/\">Scope of cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/elements-of-cost\/\">Elements of cost<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/types-of-cost\/\">Types of cost<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/material-control-in-cost-accounting-pdf\/\">Material control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/perpetual-inventory-system\/\">Perpetual inventory system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/pricing-of-materials\/\">Pricing of materials<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/bin-card\/\">Bin Card<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/store-ledger\/\">Stores Ledger<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/incentive-plans\/\">Incentive plans<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/overhead\/\">Overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/accounting-treatment-of-idle-time\/\">Idle time<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/system-of-wage-payment-in-cost-accounting\/\">System of wage payment in cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-time-rate-system-and-piece-rate-system\/\">Time rate vs piece rate wage system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-centre\/\">Cost Center<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/labor-turnover\/\">Labour Turnover<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/difference-between-management-accounting-and-cost-accounting\/\">Difference between management accounting and cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/allocation-and-apportionment-of-overheads\/\">Allocation and apportionment of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-allocation-and-apportionment-of-overheads\/\">Allocation vs Apportionment of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/absorption-of-overheads\/\">Absorption of overheads<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/over-absorption-and-under-absorption-of-overheads\/\">Over absorption and under absorption of overheads<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/activity-based-costing\/\">Activity based costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-traditional-costing-and-activity-based-costing\/\">Traditional costing vs ABC system<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/reconciliation-of-accounts\/\">Reconciliation of accounts<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/unit-costing\/\">Unit costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-format\/\">Cost sheet format<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-sheet-vs-production-account\/\">Cost sheet vs production sheet<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/job-costing\/\">Job costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/batch-costing\/\">Batch Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-batch-costing\/\">job costing vs batch costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/contract-costing\/\">Contract costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-job-costing-and-contract-costing\/\">Job Costing vs Contract costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/process-costing\/\">Process Costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-costing-vs-job-costing\/\">Process costing vs job costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/joint-products\/\">Joint products<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/by-products\/\">By Product&nbsp;<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/equivalent-production\/\">Equivalent production<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/marginal-costing\/\">Marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/applications-of-marginal-costing\/\">Application of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/cost-volume-profit-analysis\/\">Cost volume profit analysis<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/tools-and-techniques-of-marginal-costing\/\">Tools and techniques of marginal costing<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budget\/\">Budget<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/break-even-point\/\">Break even point<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/process-of-budgetary-control\/\">Process of budgetary control<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/explain-the-advantages-and-limitations-of-budgetary-control\/\">Advantages and limitations of budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/budgetary-control\/\">Budgetary Control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/zero-base-budgeting\/\">Zero base budgeting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/standard-costing\/\">Standard Costing<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/commerceiets.com\/variance-analysis\/\">Variance Analysis<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-standard-costing-and-budgetary-control\/\">Standard costing vs budgetary control<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-management-accounting-and-cost-accounting\/\">Management accounting vs cost accounting<\/a><\/td><td><a href=\"https:\/\/commerceiets.com\/difference-between-financial-accounting-management-accounting-and-cost-accounting\/\">Cost accounting vs financial accounting<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noreferrer noopener\">CONNECT ON LINKEDIN<\/a><\/div>\n<\/div>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"512\" height=\"152\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg\" alt=\"SCOPE OF COST ACCOUNTING PDF\" class=\"wp-image-4836\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1.jpg 512w, https:\/\/commerceiets.com\/wp-content\/uploads\/2019\/04\/cropped-cropped-Presentation-resize-1-300x89.jpg 300w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><figcaption>SCOPE OF COST ACCOUNTING PDF<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>SCOPE OF COST ACCOUNTING PDF This post contains the Scope of Cost Accounting Pdf file Cost Accounting is an art or process of recording, analyzing and classifying of expenditure for the purpose of product costing or service costing, ascertainment of profitability, operational planning and cost control. It is a forward looking approach which is related&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/scope-of-cost-accounting-pdf\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;SCOPE OF COST ACCOUNTING PDF&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":2744,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[187],"tags":[190],"class_list":["post-2739","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cost-accounting","tag-cost-accounting"],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=2739"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/2739\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/2744"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=2739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=2739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=2739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}