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Gopika Juneja, Lovely Professional University Unit 9: Cost Accounting Records

Unit 9: Cost Accounting Records Notes

CONTENTS
Objectives
Introduction

9.1 Cost Accounting Records as per Companies Act
9.2 Prescription of Cost Accounting Record Rules
9.2.1 Preparation of Preliminary Draft Rules

9.2.2 Cost Accounting Records Rules and its Applicability
9.3 General Provisions under the Various Cost Accounting Records Rules
9.3.1 Short Title and Commencement
9.3.2 Application Clauses under Respective Cost Accounting Records Rules
9.4 Maintenance of Records

9.4.1 Statistical and other Records
9.4.2 Penalty
9.5 Schedule I – Basic Provisions

9.5.1 Flexibility under the Records Rules
9.6 Summary
9.7 Keywords
9.8 Review Questions
9.9 Further Readings

Objectives

After studying this unit, you will be able to:
 Discus the prescription of cost accounting record rules;
 Explain cost accounting records rules and its applicability;
 Discuss general provision under the various cost accounting records rules;

 Explain the procedure for maintenance of records.

Introduction

Cost Accounting Record Rules are the prescribed details by the Central Government w.r.t.
utilisation of material, labour or other items of cost in respect of a class of companies notified
under the provisions of Companies Act, 1956. The Cost Accounting Record Rules are aimed at
inducing the companies to have control over their operations and costs with a view to achieve
optimum utilisation of resources in the economy. These Rules inculcate a system so that such
records are maintained under generally accepted cost accounting principles in a systematic way
and on a uniform basis among the various companies of an industry. This ensures the availability

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