what is cost accounting

cost accounting what is cost accounting please send me notes for cost accounting uptu mba second sem.

Cost Accounting: Cost accounting primarily deals with collection,analysis of relevant cost data for interpretation and presentation for various problems of management. Definition: Chartered Institute of Management Accountants (CIMA) defines Cost accounting as, “The establishment of budgets, standard cost and actual cost of operations, processes, activities or products and the analysis of variances, profitability or the social use of funds”. Scope and Use of Cost accounting: A company having a proper cost accounting system will help the management in following ways: • The analysis of profitability of individual products,services or jobs. •  The analysis of profitability of different departments or operations. • The analysis of cost behavior of various items of expenditure in the organization, this will help in future cost estimation. • It will assist in setting the prices. • Helps in control purposes. • Cost records are the base for MIS. • Cost comparisons help in efficient cost system. Now it is applicable to both service and manufacturing sector. Role of Cost Accounting in decision making: •Discloses profitable and unprofitable activities. •Measures efficiency of unit. •Base for tender and estimates. •Furnishes reliable data for cost comparison. .Guides future production policies. if you have any query please leave the comment if you want any notes we will provide you. you can also contact us myrogation@gmail.com