Cost book-keeping, Cost Accounting

Assignment Help:

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.


Related Discussions:- Cost book-keeping

Cost variance and schedule variance, (i) In terms of cashflow, which month ...

(i) In terms of cashflow, which month will be the most costly for your project? (ii) If the 3rd and 4th months are more expensive by 25% each because the outsourced labour took

Prepare a cash budget, You have been asked to prepare a cash budget for Whi...

You have been asked to prepare a cash budget for Whitborrow plc for the next three months, October, November and December. The Managers are concerned that they may not have suffici

Traditional Costing System and Job Order Costing System, Hello, I''m curren...

Hello, I''m currently doing a research on a company and planning an Activity Based Costing system since the company is using Traditional Costing system to allocate the overhead to

Cvp and computer applications, CVP and Computer Applications The broad...

CVP and Computer Applications The broad availability of personal computers encourages more managers to apply cost volume profit analysis. Computers can quickly create the comp

Process costing procedure, Process Costing Procedure 1. The production...

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

What are the variable costs, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 Variable costs are those

What is cmmi, Capability Maturity Model Integration (CMMI) is a process dev...

Capability Maturity Model Integration (CMMI) is a process development approach that gives organizations with the essential elements of effective processes. It can be used to gui

Operation and design of cost accounting systems, Operation and Design of Co...

Operation and Design of Cost Accounting Systems A number of features should be taken into account previously to finalizing the design of a cost and management accounting syste

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd