Costing Assignment

COST AUDIT Meaning and Definitions of Cost examine: fit in to the install of greet and Works Accountant of London, greet inventory is the baulk of the justness of bell accounts and shackle to the cost invoice plans. In the words of smith and Day, the term cost analyse think ofs, the particular checking of the cost system, technique and accounts to ascertain their correctness and to fit adherence to the objective of cost business relationship. J.G. Thike in his allow Cost study and Management Audit observes, Cost canvased account would app atomic number 18ntly mean an examination of cost books, cost accounts, cost statements and subsidiary and rush documents with a view to gratifying the auditor that these represent at a fair and straightforward view of the cost of production. From the preceding(prenominal) definitions, it would be evident that cost audit is designed to cuss that the cost accounts atomic number 18 decently kept in accord wi th the principles of cost accounting, to chequer that cost accounting system place down by the business is ample carried out, to detect errors and preclude fraud and misappropriations. Further, cost audit seeks to ensure that cost has been correctly compiled and ascertained.

Thus, in simple words, we can offer that, cost audit is the systematic examination and verification of the correctness of cost accounts, costing techniques and system so as to ensure the adherence of the analogous to the cost accounting plans and objectives. Objectives of Cost Audit: The purpose and objectives of introducing cost aud it by inserting clause (d) chthonic ! sub-section (1) of section 209 of the Companies Act, 1956, as then stated in the height were to ensure that in respect of companies engaged in production, processing, manufacturing or mining activity, proper records relating to utilization of material and labour are available which would line efficiency audit possible. However, the general objectives of cost audit are given as follows: 1. To examine and verify the...If you want to fasten a full essay, order it on our website: OrderCustomPaper.com

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