Last-in-First out method (LIFO) - It is a method of pricing the issues of materials. This method is based on the assumption that the items of the last batch (lot) purchased are the first to be issued.
The Chartered Institute of Management Accountants has defined a code as " a system of symbols designed to be applied to a classified set of items to give a brief account reference , facilitating entry collation and analysis"
Cost Accounting is a branch of accounting, which has been developed because of the limitations of Financial Accounting from the point of view of management control and internal reporting.
Following reports may be provided by a Cost Accounting Department for the use of its executives: Cost sheets setting out the total cost, analyzed into various elements, giving comparative figures for the previous period and for other plants under the same management.
Management of business concerns expects from Cost Accounting a detailed cost information in respect of its operations to equip their executives with relevant information required for planning, scheduling, controlling and decision making.
Different industries follow different methods of costing because of the differences in the nature of their work. The various methods of costing are as follows:
Prior to the industrial revolution, businesses were small and characterized by simple market exchanges between individuals and organizations. In those times there was a need of accurate book keeping though not that much of cost accounting.