The main objectives of Cost Accounting are as follows : (i) Ascertainment of cost, (ii) Determination of selling price, (iii) Cost control and cost reduction, (iv) Ascertaining the profit of each activity, (v) Assisting management in decision-making.
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Accounting costs refer to those costs that are paid by the entrepreneur while hiring the factors of production from outside. He has to pay rent for the hired land and building, wages to the laborers employed and interest on capital borrowed.
The office serves as the administrative centre of an organization. Mechanical devices have been found more and more essential to the efficient running of a modern office. A few years ago, typewriter was the only machine used in office.
The coverage of sales accounting includes charging and collecting payments, sales statistics and information for reference at a future date. The following kinds of forms and documents are used in sales accounting.
The main advantages of accounting machines are: (a) The work done in accounting machine is neat and accurate. (b) The entries done by this machine are legible and tidy.
The machines, which make ledger posting, balancing of ledgers, preparation of profit and loss account and balance sheet, are called bookkeeping machine.