Everything you need to know about standard costing. Standard costing is a technique of cost control. The CIMA Official Terminology defines it as "a control technique which compares standard costs and revenues with actual results to obtain variances which are used to stimulate improved performance." Standard cost is a planned cost for a unit of product, component or service produced [...]
Everything you need to know about the objectives of cost accounting. Cost accounting is a recent development born in response to the needs of managerial personnel for detailed information about the cost of a product or unit of service. In the initial stages of its evolution, cost accounting confined itself to accumulation of historical costs and presentation of the same [...]
Everything you need to know about the limitations of cost accounting. Despite the fact that the development of cost accounting in one of the most significant steps to improve performance, certain objections are raised against its introduction. There are also objections raised by businessmen against the introduction of cost accounting. Sometimes certain objections are raised against cost accounting system and [...]