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
A retail dealer in garments is currently selling 24000 shirts annually. He supplies the following details for the year ended 31st December,2007. Rs Selling Price per shirt

Overhead Absorption Absorption of overheads refers to the sharing out of overhead costs to the some cost centers such used the overheads. This is utilized when the overheads c

XYZ Co. manufactures automation machinery according to customer specifications.  The company is relatively new and has grown each year.  XYZ Co. operated at about 75% of practical

Build-Rite construction has received favorable publicity from guest appearances on a public TV home improvement program. Public TV programming decisions seem to be unpredictable, s

You are assisting the accountant on the preparation of the final accounts of a business with a year-end of 31 December. A trial balance has been drawn up and a suspense account ope

raw an organization chart of any actual or hypothetical manufacturing organization to show the position of management/cost accounting department within an organization and discuss

31. Special Orders Maria’s Food Service provides meals that nonprofi t organizations distribute to handicapped and elderly people. Here is her forecasted income statement for April

Matheson Electronics' Canadian Branch will help introduce into Canada the just developed new electronic device which, when mounted on an automobile, will tell the driver how many m

Economic Order Quantity This constitutes the quantity purchased of either raw materials or stocks which is considered most optimum. It is the quantity such minimizes both ord

need help with master budget