Meaning of Cost Accounting:Cost accounting is the process of recording, analyzing, and interpreting a business’s costs. It helps management teams make informed decisions about pricing, budgeting, and resource allocation. Objectives of Cost Accounting: Scope of Cost Accounting:The scope of cost accounting involves collecting, evaluating, and summarizing data related to the costs of services, products, or…
Cost accounting, as the name suggests, involves the accounting and management of costs within a business. It encompasses the recording, classification, analysis, and allocation of costs related to production and other business operations. Understanding cost accounting is crucial not only for academic purposes but also for its practical applications in business decision-making. Key Concepts in…
The origin and evolution of cost accounting can be traced back to the Industrial Revolution. Before this period, cost accounting methods were basic and focused primarily on direct costs. Businesses were generally small, and costs were mainly composed of direct variable expenses such as labor and materials. During the Industrial Revolution, cost accounting evolved to…
The Goods and Services Tax (GST) was introduced to streamline the indirect tax system in India by subsuming multiple taxes levied by the Central and State Governments into a single tax. This initiative aimed to reduce tax cascading and create a unified national market for goods and services. What is GST? GST is an indirect…
