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
We have earlier explained working capital by total current assets less current liabilities. It, in other words, implies that all the assets held through the business along with the

Moore Corporation follows a policy of a 10% depreciation charge per year on all machinery and a 5% depreciation charge per year on buildings (the corporation uses the nearest full

Accounting Case Study: The Champlain Career Consulting Corporation ("CCCC") is owned by three Trent graduates. Incorporated in 2009, CCCC provides a wide-range of career plann

allocate the overheads to the three departments and do the secondary allocation of service departments

Outdoor Travel Inc. needs to estimate the cost of capital for the evaluation of capital expenditures. A typical project is financed with 25% debt-to-value ratio (i.e., D/(D+E) =

distinguish between bin card and store ledgre

describe the procedures involved in payroll labour cost accounting

GZ Inc. manufactures two products that require both machine processing and labor operations. Although there is unlimited demand for both products, GZ could devote all its capacitie

Division B uses  normal  costing in its job-order costing system, with manufacturing overhead  applied  based on direct labour hours.  You have obtained the following information a

Your company completed the East Side subdivision. The costs are shown in Figure 11-4. The site concrete labor and outside lighting were done by subcontractors. The grading and exca