Page 24 - DCOM202_COST_ACCOUNTING_I

Cost Accounting – I

Notes 3. “Cost accounting is becoming more and more relevant in the emerging economic scenario
in India”. Explain this statement.
4. “Cost accounting system that simply records costs for the purpose of fixing sale price has
accomplished only a small part of its mission”. Explain.
5. What are the main characteristics of an ideal cost accounting system?

6. What are the objectives of cost accounting?
7. Explain the importance of costing under present circumstances.
8. State the advantages of costing. How does it aid the management and what objections are
raised against cost accounts?
9. Critically evaluate the arguments for the installation of costing system in an industry.
10. What do you mean by installation of costing system? Explain the practical difficulties
involved in installing such a system in a manufacturing concern.

11. “A good costing system is a valuable aid to management”. Discuss.
12. “Cost accounting has become an essential tool of management”. Comment and state the
steps to be taken while installing a costing system in a manufacturing concern.
13. Which method of costing would you recommend for the following industries? Give
reasons:
(i) Ship building, (ii) Automobile manufacturing,
(iii) Cement industry, (iv) Chemicals industry,

(v) Transport, (vi) Electricity supply or power house,
(vii) Oil refining, (viii) Coal mining,
(ix) printing, and (x) Soap manufacturing.
14. Explain the methods and techniques of cost accounting in detail.

15. Discuss cost accounting in Indian context.
16. What are the methods of costing? Explain their adaptability in different industries.
17. “Cost accounting has become an essential tool of modern management”. Comment on this
statement.

18. State the steps involved in the installation of a costing system in a large manufacturing
company.

Answers: Self Assessment

1. False 2. True
3. True 4. Cost control

5. cost audit 6. Budgeting
7. True 8. False
9. False 10. Cost
11. prime cost 12. cost accounting
13. comparison of expenditures 14. Cost data

15. batch costing

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