Page 4 - Cost Accounting - Ready Reckoner

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Introduction to Cost Accounting

Cost is an expense. Costing is the technique of ascertaining Cost. Cost Accounting
is the recording, classifying, analyzing, allocating and appropriating every element of
cost to every unit of product or service.

Objectives of Cost Accounting:

1. Ascertainment of Cost.
2. Fixation of selling price.
3. Ensure cost is under control so that profit is maintained.
4. Take up cost reduction measures wherever possible.
5. To provide information to management necessary for decision making.