CA Inter Costing “Accounting is a business language,” says the author. This language can be used to communicate financial transactions and their outcomes.
Cost accounting and management accounting are two key accounting words that are used to control and establish the policies of a company.
Both have different styles and are utilized for various purposes. Let’s have a look at the important keys.
Cost accounting deals with the calculation and pricing of costs and expenses to purchase or produce something.
It relates to the calculation per unit cost using different costing techniques. Its primary purpose is to facilitate managers in decision-making.
The following are the major functions of cost accounting:
Budgeting: Various budgets are generated in cost accounting to demonstrate cost, revenue, profit, production capacity, and efficiency of equipment and machinery, as well as labor efficiency.
Because reports are not unnatural by the norms of generally accept Accounting Principles. The budget is designed in a scientific and systematic manner that is typically unique to the organization (GAAP).
For external reporting and internal profit measurement, classify and break down costs. Because expenses things are easy to get such at a fine level, paying for unprofitable things is simple.
The provision of suitable information for decision-making, planning, cost control, and performance evaluation is the focus of management accounting.
Data concerning a company entity’s operations are transformed into information, knowledge, and wisdom via management accounting. This goes a level beyond cost accounting.
Management accounting investigates the causes of profit or loss and the elements that influence efficiency in order to aid decision-making. As a result, cause and effect are a crucial aspect of managerial accounting.”
Faculty About (CA Inter Costing) By- CA Sunil Keswani
Sunil Keswani is a Fellow Member of “The Institute of Chartered Accountants of India”. He is a first-class commerce graduate from prestigious Delhi University.
Sunil Keswani completed the Master of Financial Analysis Program from “The Institute of Chartered Financial Analysts of India University”. And got the designation of Chartered Financial Analyst, and a bright academic career. He topped Delhi University by scoring 100% marks in Mathematics.
He had also been awarded K.V. Chandramouli Memorial Prize for best paper in Mathematics by the prestigious “Institute of Chartered Accountants of India. His teaching career began after his much-appreciated spell at ICICI Bank.
He has been guiding the students of CA, CS & CMA in the subject of Cost Accounting, Management Accounting, and Financial Management for the last 9 years in Delhi.
His friendly behavior and distinguished style of teaching have popularized him as a friend-cum coach among students. He was also a faculty member of NIRC-ICAI for the Intermediate course.