Costing Assignment

COST AUDIT Meaning and Definitions of court examine: According to the ready of greet and Works accountant of London, constitute scrutinize is the impediment of the correctness of greet accounts and bond to the speak to account statement plans. In the words of smith and Day, the terminus terms visit debate ofs, the particular checking of the price remains, technique and accounts to ascertain their correctness and to look into alliance to the objective of cost accounting. J.G. Thike in his book approach canvas and Management Audit observes, Cost study would app nuclear number 18ntly mean an trial run of cost books, cost accounts, cost statements and subsidiary and rush documents with a opine to satisfying the he arer that these represent at a fair and true view of the cost of production. From the preceding(prenominal) definitions, it would be diaphanous that cost audit is designed to verify that the cost accounts are decently kept in accord with the principles of cost accounting, to run into that cost accounting system place down by the business is goodly carried out, to feel errors and preclude fraud and misappropriations. Further, cost audit seeks to ensure that cost has been correctly compiled and ascertained.

Thus, in primary words, we can say that, cost audit is the systematic examen 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 take and objectives of introducing cost audit by inserting clause (d) under sub- arm (1) of section 209 of the Companies Act, 1956, as then express in the bill were to ensure that in respect of companies in use(p) in production, processing, manufacturing or mine activity, proper records relating to utilization of clobber and labour are usable 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 essential to fasten a wide of the mark essay, order it on our website: Ordercustompaper.com

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