Cost accounting is an approach to evaluating the general costs that are associated with conducting business. Usually based on standard accounting practices.
(prHWY.com) March 24, 2012 - Calofornia, CA -- Cost Accounting is not an exact science like other branches of accounting but is an art which has developed through theories & accounting practices based on common sense & reasoning. These practices are changing with time. There is no stereotyped system of Cost Accounting applicable to all industries. It lacks uniform procedure. Ideas, methods & techniques of cost accounting understood & applied differently by different industries.
Cost accounting needs to identify the different types of expenses and allocation of expenses is regarded as a complicated technique of accounting. It needs different forms and formulas to collect the knowledge and preparing the reports. Also it requires number of steps in ascertaining such details. So it involves a more complex technique. More complex and complicated technique of Cost Accounting @
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Technique & methods of cost accounting differ from organization to organization. Standard process is not adequate for all the requirement of different organizations. It depends on the nature of business & the type of service/product manufactured by the firm. If wrong process or process is used, it will affect the result. So inapplicability of same costing process & process is the main limitation of cost accounting. Cost allocation which measures the costs associated with percentage of cost apportioned in the production of a service or product ; Work in Progress which will give you the amount of products which are being worked on at any given point of time. theglobaltutors can give you Accounts Assignment Help @
http://www.theglobaltutors.com/accounts-assignment-help.aspx on any of the above performance metrics. Cost accounting, also termed as managerial cost accounting, functions on set standards that the managers of the organization comply with, in order to measure the expenses & decide the utilization of resources that the current business structure demands.
Cost accounting aids in curbing unnecessary utilization of resources. If the resources are negatively exploited, cost accounting can study the cost of production & further analyze the business cycles in order to understand the actual reason behind the rising production costs. Thus, the escalation of the production costs can be curbed when cost accounting approach is put in to practice. Cost accounting proves to be helpful when the organization designs to undertake the program of launching a brand spanking new product. The cost incurred for the purpose of production is thought about by cost accounting coupled with a detailed market evaluation to understand if the product will do well if introduced in to the market. This answers your query on what is cost accounting.
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