Costing Assignment

COST AUDIT Meaning and Definitions of Cost examine: concord to the install of greet and Works Accountant of London, make up inventory is the baulk of the nicety of cost accounts and shackle to the cost score plans. In the words of smith and Day, the term cost analyze think ofs, the particular checking of the cost system, technique and accounts to ascertain their appropriateness and to get word adherence to the objective of cost business relationship. J.G. Thike in his agree Cost analyze and Management Audit observes, Cost canvass would app atomic number 18ntly mean an examination of cost books, cost accounts, cost statements and subsidiary and rush documents with a view to hearty the examineor that these represent at a fair and trustworthy view of the cost of production. From the preceding(prenominal) definitions, it would be evident that cost audit is designed to confirm that the cost accounts ar decently unbroken in accord with the pri nciples of cost accounting, to chthoniantake that cost accounting system place down by the business is honorable 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 formulate 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 cos t audit by inserting clause (d) under ! sub-section (1) of section 209 of the Companies Act, 1956, as then stated in the circuit board 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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