Page 183 - DCOM206_COST_ACCOUNTING_II

Cost Accounting – II

Notes  Section 209(1) (d) also specifies that the rules are to be prescribed for any class of company
engaged in production, processing, manufacturing or mining activities.

 These rules contain the particulars relating to utilisation of material or labour or other
items of cost as may be prescribed to include such details in the books of accounts.

9.7 Keywords

Associate: It means an enterprise in which an investing reporting party has significant influence
and which is neither a subsidiary nor a joint venture of that party.
Bulk Drug: It means any pharmaceutical, chemical, biological or plant product including its
salts, esters, stereo-isomers and derivatives, which are used as such or as an ingredient in any
formulation.
Infant Milk Food: It includes all types of milk food intended for the routine, complementary or
supplementary food of infants and children up to the age of five years and other types of
modified milk foods for infants which are intended for the feeding of infants and children
during the treatment of gastro-intestinal disorders.
Intermediate: It means any compound which is manufactured from primary or basic raw material
and which is used in the production, processing or manufacturing of any dye.

Joint Venture: It means a contractual arrangement whereby two or more parties undertake an
economic product, which is subject to joint control.
Milk Food: It means any food produced by mixing whole milk, partly skimmed milk or milk
powder with ground barely malt or any other malted cereal grain, wheat flour or any other
cereal flour or malt extract.
Related Party Transaction: It means a transfer of resources or obligations between related
parties, whether or not a price is charged.

Significant Influence: It means participation in the financial or operating policy decisions of an
enterprise, but not control of those policies.

9.8 Review Questions

1. Highlight the prescription of cost accounting record rules in brief.

2. Write a brief note on cost accounting records rules and it’s applicability.
3. Discuss general provision under the various cost accounting records rules.
4. Explain the procedure for maintenance of records in brief.
5. What do you mean by statistical records? Discuss.
6. What do you mean by related party relationships?

7. With respect to materials discuss the information prescribed under Schedule I.
8. Discuss the factors considered by the government in making the final selection.

Answers: Self Assessment

1. Central 2. Cost Audit
3. partnership, proprietary, etc 4. Small scale companies

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