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
Frame-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 primary raw mat

Consider the following two mutually exclusive projects:   Whichever project you choose, if any, you require a 15 percent return on your investment.   a. If you apply the payb

Goal Definition and Communication - Behavioural Aspects of Standards Goal Definition The desired goals should be clearly defined to individuals, departments and the organ

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

Time Analysis - Cost Accumulation This is generally achieved via having the employee complete a daily or weekly timesheet or via contain job cards or piecework tickets. As whe

Change in Fixed Cost In graph yx shows the existing profit curve for a company along with a fixed cost OY break=-even point B, margin of safety M; profit SX whereas sales volu

Elite Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $300,000 cost with an expected four-year life a

Show the effect of an increase in each of the items listed below on the FCFF and FCFE. Suppose a $100 increase in every case and a 40 percent tax rate a.    Net income b.    Cas

How the FIFO, LIFO and AW problems can be solved?

Cost Element Stage 1. Cost Elements The raw data concern with Labour, Expenses, and Materials are gathered from Invoices, Payroll, and Requisitions and Goods Issued Notes