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Link between Financial and Cost Books
The link among the two sets of books is achieved via operating a cost ledger control account and a financial ledger control account. Cost Ledger Contra Account such in the financial and cost books respectively. All the items that affect the costs accounts are recorded in the cost ledger control account, the similar items are recorded in the financial ledger control accounts, however on the opposite side of the account thus the account completes the double entry. The Cost Ledger Control Account is only a memorandum entry and is hence made in addition to the common entries in the financial books of account.
If question (CA IPCC) is silent which method to follow: avg cost or fifo or lifo?
what is the classification of cost & how it is done?
Series Arithmetic Mean Standard Deviation Small-company stocks 15.9 % 32.8 % Large-company
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