Limitations of cost accounting, Cost Accounting

Assignment Help:

LIMITATIONS OF COST ACCOUNTING

Cost Accounting similar to additional branches of accountancy is not an precise science although is an art which was developed throughout theories and accounting observe based on commonsense and reasoning. These practices are active and evolving. Therefore, it requires a uniform process applicable to all the industries crossways.

1. It is costly and as such may not be practical for small businesses.

2. It is based on evaluation.

3. It may not be appropriate to all sorts of industries.

4. Occasionally, the mistakes in financial statements may get reflected in cost accounts.


Related Discussions:- Limitations of cost accounting

Differential cost analysis, Effects of differential cost analysis in decisi...

Effects of differential cost analysis in decision making

Participation - behavioural aspects of standards, Participation - Behaviour...

Participation - Behavioural Aspects of Standards It has already been pointed out in the previous paragraph such standard costing systems would be more acceptable whether the e

Differential costing, What do you mean by differential costing ? How it dif...

What do you mean by differential costing ? How it differ from marginal costing ? explain its practical application with examples?

Stock control and its level, Stock control and its Level Management m...

Stock control and its Level Management must formulate decisions regarding to the control of stock levels along with a view to minimizing the cost of the company whereas achie

Compute the manufacturing overhead, Slick Corporation is a small producer o...

Slick Corporation is a small producer of synthetic motor oil. During May, the company produced 5,000 cases of lubricant. Each case contains twelve quarts of synthetic oil. To achie

Calculate the direct-material price and quantity variances, Quicksilver Com...

Quicksilver Compnay has set the follwoing standards for one unit of product: Direct material Quantity: 6.2 lbs per unit Price per lb: $11 per lb Direct Labor Quantity: 6 hrs

Total variable overheads variances, Total Variable Overheads Variances ...

Total Variable Overheads Variances  If Variable Overhead Expenditure Variance =  Shs.1, 330 Variable Overhead Efficiency Variance = Shs.320 Then total variable overheads

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd