User talk:Soriesesay

INTRODUCTION OF COST ACCOUNTING:  MEANING OF COST ACCOUNTING:- Cost accounting may be defined as the establishment of budgets,standard costs and actual costs of operations, processes, profitability or the social use of funds. The chartered institute of management accountant(CIMA) defines cost accounting as the process of accounting for costs from the point at which expenditure is insurred or committed to the establishment of its ultimate relationship with cost centres and cost units. DEFINITION OF COST:- Cost is defined as the amount of expenduture (abtual or notional) meurned on or attributable to a product,a process,a job or service. Cost can also be refered to as the value of ecnomic resources used as a result of producing or doing the things costed.

DEFINITION OF COST ACCOUNTACY:- Cost accountancy is defined by (CIMA) as the application of costing and cost accounting priaciples, methods and techniques to the science art and practice of cost control and ascertainment of profitability. It includes the prerentation of information derived there from the purposes of management decision making. FUNCTION OF COST ACCOUNTING: 1)Idle time is highlighted. 2)Ares of wastages are indicated. 3)It facilitates production 4)Profitable and unprofitable product and services are indentifed. 5)Efficient and inefficient methods of production are highlighted. 6)It facilitates stock cotrol. 7)Comparative information is generated from job to job, where standard cost are prepared.

ADVANTAGES OF COST ACCOUNTING:- The major advantages of cost accounting are as follows:                      1)DISCLOSES PROFITABLE AND UNPROFITABLE ACTIVITES:-                 This enable management to take step to reduce or eliminate wastages and inefficiencies occuring.                    2)DECIRION MAKING:-  Cost accounting help in decision making. It provides suitable data and related information from managerial decision making, like introduction of new production. 3)POLICY FORMULATION:- Cost accounting help in the formulation of policy that enables management formulate production and pricing policies and prepares estimation controcts.  4)COST CONTROL:-     Cost accounting enhances cost control using special techniques such as standard costing and budgetary control. 5)FRAUD AND MANIPULATION:-         Cost audit system which forms part of cost accounting, enables management prevent manipulation and fraud through the avaliability of reliable cost data.