Limitations of cost accounting, Cost Accounting

LIMITATIONS OF COST ACCOUNTING

Cost Accounting similar to additional branches of accountancy is not an precise science although is an art which was developed throughout theories and accounting observe based on commonsense and reasoning. These practices are active and evolving. Therefore, it requires a uniform process applicable to all the industries crossways.

1. It is costly and as such may not be practical for small businesses.

2. It is based on evaluation.

3. It may not be appropriate to all sorts of industries.

4. Occasionally, the mistakes in financial statements may get reflected in cost accounts.

Posted Date: 10/15/2012 6:45:54 AM | Location : United States







Related Discussions:- Limitations of cost accounting, Assignment Help, Ask Question on Limitations of cost accounting, Get Answer, Expert's Help, Limitations of cost accounting Discussions

Write discussion on Limitations of cost accounting
Your posts are moderated
Related Questions
Price and Quality Aspect of Variance At this point it is serious to understand that all variance has two aspects, a price aspect and a quantity aspect: these two aspects combi

The beginning inventory balances of Item X on August 1 and the purchases of the item during the month of August were as follows: August 1 Beginning Inventory 600 units @ $10.00

#what is the formula for calculating payback period and what are its limitations ?

what is Taylor''s differential piece rate plan

If a company trades in a building towards a new building and does not recognize a gain or loss (because of code section 1031), will this transaction affect the cash flows statement

#questionFrame-it Ltd is a manufacturer of metal picture frames. The firm''s two product lines are designate S (small frames: 12 x18 cm) and L (large frames: 20 x 25 cm). The prima

On July 1, 2008, Falk Company signed a contract to lease space in a building for 15 years. The lease contract calls for annual (prepaid) rental payments of $100,000 on each July 1

Handy-Man Services is a repair-service company specializing in small household jobs. Each client pays a fixed monthly service fee based on the number of rooms in the house. Records

what is a cost sheet? what are its advantages?

Describe the meaning and relevance of interdependence of variances when reporting to managers.