cost accounting procedures
In accounting, cost is defined as the cash amount (or the cash equivalent) given up for an asset. Cost contains all costs necessary to acquire an asset in place and ready for use. For example, the cost of an item in inventory also includes the item’s freight-in cost. The cost of land consist upon all costs to get the land ready for its use.
Cost accounting is now used not only by manufacturing organizations but by service and trading organizations as well, both in profit and non profit sectors of economy. It is used as an aid for planning and control of ongoing operations, for evaluation of alternatives
Difficulties Encountered in Process Costing Procedures: Learning objectives of this article: What are the difficulties or Limitations in a process costing procedure? Certain difficulties likely to be encountered in actual practice should be mentioned with regard to process cost accounting procedures: The determination of