Cost book-keeping, Cost Accounting

Cost Book-Keeping

In cost account accounts, extensive employ is made of control accounts that are based in the similar principles as those utilized in financial accounts.  Two main accounting systems are generally used as:

Interlocking Cost Accounting System:

Beneath this system, financial accounting and separate cost accounting books are maintained though both employ the similar basic accounting data. The financial accounting books contain the normal and credit entries inside themselves. In addition, a memorandum account identified also as Cost Ledger Control accounts is keep and all the items to be transferred in this account, to the cost accounts are posted.

Cost accounting books on another hand contain impersonal accounts essential for costing reasons in addition to a Financial Ledger Control Account, identified also as Cost Ledger Control Account that enables the financial and Cost Ledger to be interlocked. The interlocking cost accounting system, therefore costing and financial profit differ and contain to be reconciled at the ending of the financial year.

Posted Date: 2/5/2013 8:04:18 AM | Location : United States







Related Discussions:- Cost book-keeping, Assignment Help, Ask Question on Cost book-keeping, Get Answer, Expert's Help, Cost book-keeping Discussions

Write discussion on Cost book-keeping
Your posts are moderated
Related Questions
Cash Budget - Budgetary Planning and Control This can records the cash outflows and inflows that are expected to take place in respect of every functional budget. This may be

From the information provided, determine: 1.) The amount of retained earnings at December 31 and 2.) The amount of revenues for the period. Additional data:1.)Expenses for the peri



What is the major value of the weighted cost of capital calculation for the firm?

Difference between budgetary planning and budgetary control

A company provides several different services to its customers from a single office. Fixed costs of the office, including staff costs, are absorbed into the company's service costs

M aterials mix variance :  It can be described as that portion of direct material usage variance which is the variation between the actual quantities of ingredients used in a mi

Process Costing Procedure 1. The production factory is divided into a number of methods. 2. An account is maintained and opened for every process. 3. Every process accou

The following information pertains to Tudor Logistics Company: 200X Information: Sales                                      $4,875,000 Selling expense