Cost Accounting Information And Price Determination

The need for cost accounting came with increased industrialization, engineering an expansion in manufacturing.  It is therefore obvious that in efficient system of costing is essential for industrial control.

In period of boom, manufacturers are able to show profit notwithstanding the leakage which pass unchecked, but in periods of trade competition concealed inefficiencies have to track down and rigorous control must be exercised to ensure even modest margin profit.

There is not yet an agreed best method of costing products though it may be helpful to recognize that cost allocation are being used to obtain a mutually acceptable price and not necessary to portray caused and effect relationship of cost incurrence.   But price determination from cost under efficient operation through efficient cost system will most probably approximate the price of the product to its value. 

 

Approval page

Dedication

Acknowledgement

Abstract

Table of content

Bibliography