{"id":7107,"date":"2023-05-17T16:20:40","date_gmt":"2023-05-17T16:20:40","guid":{"rendered":"https:\/\/commerceiets.com\/?p=7107"},"modified":"2023-05-17T16:26:13","modified_gmt":"2023-05-17T16:26:13","slug":"objectives-of-cost-accounting","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/objectives-of-cost-accounting\/","title":{"rendered":"Objectives of Cost Accounting"},"content":{"rendered":"\n

Meaning of Cost Accounting<\/h3>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

ACCORDING TO ICMA (Institute of Cost and Management Accountants)<\/strong><\/p>\n\n\n\n

\u201cCost accounting is the process of accounting for cost from the point at which expenditure is incurred or committed to the establishment of its ultimate relationship with cost centers and cost units. In its widest usage, it embraces the preparation of statistical data, the application of cost control methods and ascertainment of the profitability of activities carried out or planned.\u201d<\/p>\n\n\n\n

ACCORDING TO RN CARTER<\/strong><\/p>\n\n\n\n

\u201cIt is a system of recording in accounts the materials used and labor employed in the manufacture of certain commodity or on a particular job.\u201d<\/p>\n\n\n\n

ACCORDING TO GORDON SHILLINGLAW<\/strong><\/p>\n\n\n\n

\u201cCost Accounting is defined as the body of concepts, methods and procedures used to measure, analyze or estimate the costs, profitability and performance of individual products, departments and other segments of a company\u2019s operations, for either internal or external use or both and to report on these questions to the interested parties.\u201d<\/p>\n\n\n\n

ACCORDING TO THE HORTON AND MASON<\/strong><\/p>\n\n\n\n

\u201cCost Accounting is a method of recording accurately the facts of manufacture or other undertakings in such a way that necessary information thereon maybe available in the form required at the earliest possible moment.\u201d<\/p>\n\n\n\n

Thus, cost accounting refers to that branch of accounting that:<\/p>\n\n\n\n