SlideShare uma empresa Scribd logo
1 de 58
Baixar para ler offline
COST
ACCOUNTING
Presented By,
Ms. Ekta. S.
Patel,
2nd Year M.Sc
Nursing
Cost accounting
Cost accounting
• Cost accounting is a process of collecting,
recording, classifying, analyzing, summarizing,
allocating and evaluating various alternative
courses of action & control of costs.
• Its goal is to advise the management on the
most appropriate course of action based on the
cost efficiency and capability.
• Cost accounting provides the detailed cost
information that management needs to control
current operations and plan for the future.
Cost accounting
• Cost accounting is defined as, “the establishment
of budget, slandered cost and actual cost of
operation, process, activities or products and
analysis of variances, profitability or social use of
funds.”
• Cost accounting is
accounting for cost
aimed at providing
cost data,
statements and
reports for the
purpose of
managerial decision
making.
Cost accounting
• To control cost by using
various techniques such
as budgetary control,
standard costing and
inventory control.
• To provide information for decision
making and planning to formulate
operative procedures.
• To help in directing and controlling
operations.
• To
ascertain
costing
profit.
• To motivate to achieve the
organization’s goals.
• To measures
the
performance of
managers and
sub units within
the
organization.
• To provide immediate information
regarding stock of raw material, semi
finished and finished goods.
• To facilitate
preparation of
financial and
other
statements.
• To help in
estimation of
cost of
future.
Cost accounting
Cost book keeping:
• It involves maintaining complete record
of all cost incurred from their incurrence
to their change to departments,
products and services. Such recording
is preferable done on the basis of
double entry system.
Cost system:
• Proper accounting for cost requires
systems and procedures.
Cost analysis:
• It involves the process of finding out the
casual factors of actual costs varying
from the budget cost and fixation of
responsibility for cost increase.
Cost control:
• Cost accounting is utilization of cost
information for exercising control. It
involves a detailed examination of each
cost in the light of benefit derived from
the incurrence of cost.
Cost report:
• The ultimate function of cost accounting
is presentation of reports. These reports
are primarily for use by the
management at different levels. Cost
reports from the basis for planning and
control, performance appraisal and
managerial decision making.
Cost accounting
To management:
• Help in ascertainment (find out) of cost
of process, activity, by using different
techniques such as job costing and
process costing.
• Aids in price fixation by using demand
and supply, activities of competitors,
market condition to great extend.
• The producer can take necessary help
from costing records.
• Helps in cost reduction by applying cost
reduction programme and improved
methods are tried to reduce cost.
• Elimination of wastage by checking the
form of waste such as time and
expenses.
• Helps in indentifying unprofitable
activities such so that the necessary
corrective action may be taken.
• Helps in checking accuracy of financial
account.
• Helps in fixing selling process.
• Helps in inventory control.
• Helps in estimate.
To employees:
• Employees have an interest in which
they are employed. An efficient costing
system benefits employees through
incentives plan in their enterprises.
Cost accounting
• It is extensive
because analysis,
allocation and
absorption
overheads require
considerable
amount of additional
work.
• The result shown by cost accountant
differ from those shown by financial
account.
• It involves
duplication
of work. (Many
industrial units
function effectively
and control the cost
effectively with the
financial accounting.
Preparing cost
accounting is
unnecessary for them
and it involves
duplication of
accounting work.)
COST-
EFFECTIVENESS
Cost accounting
• Cost-effectiveness analysis is often used in
the field of health services, where it may be
inappropriate to monetize health effect.
• Typically the CEA is expressed in terms of a
ratio where the denominator is a gain in
health from a measure (years of life,
premature births averted, and sight-years
gained) and the numerator is the cost
associated with the health gain.
Cost accounting
• Hülsmann defines cost-
effectiveness as “the most
efficient way to achieve a
set goal.” Essentially, it
expresses a balance
between attempts to keep
costs to a minimum while
maximising the
outcomes/outputs of an
educational institution or
programme.
• Cost effectiveness is defined as, “the
degree to which something is effective
or productive in relation to its cost.”
Cost accounting
Collect baseline data of client.
Identify at least 2 alternatives means of
achieving the desired outcomes..
Identify the program goal or client outcome to be
achieved.
Determine the cost associated with each program
activity
Determine the activities each group of clients will
receive.
Determine the client charges after the activities
are completed, combined with the cost, the
amount of activity and outcome information.
Compare cost outcome information for
each goal to present cost effective
analysis.
Cost accounting
Renewable options
Windows
Heating and cooling
Water heating
Insulation and ventilation
Appliances
Air setting
Lighting
Low cost no cost improvements
and plug load
Understanding
Cost accounting
• It is a tool with great potential for the
decision maker so long as he or she
can recognises the difficulty in
determining the true cost and benefits of
various alternatives. This is tool can be
especially useful when trying to be
decide between alternative expenditure
of money.
• CBA = (Benefit/Cost)
Cost accounting
• A cost benefit ratio (Z) is defined as the
ratio of the value of benefits of an
alternative to the value of alternative
cost.
• Cost benefit ratio (Z) = PVB/1
Cost accounting
• Defining problem
• Adopting research strategies
• Specify audience
• Define perspective
• Specify timeframe work
• Decide the type of study design
• Identify the outcome measures or
variable
• Search for available alternative
• Identify the type of the cost to be
included in CEA
• Analysis
The auditing process is very essential
process in nursing field at hospital or
institutional site. Nurse should require
adequate information regarding audit, cost
accounting and cost effectiveness to carry
out effective administrative and managerial
functions.
Conclusion:
Summary
Cost accounting
Cost accounting

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Scope of Management Accounting
Scope of Management Accounting Scope of Management Accounting
Scope of Management Accounting
 
Cost accounting
Cost accountingCost accounting
Cost accounting
 
Budgetary control
Budgetary control Budgetary control
Budgetary control
 
Cost accounting ppt
Cost accounting pptCost accounting ppt
Cost accounting ppt
 
Cost accounting
Cost accountingCost accounting
Cost accounting
 
Accounts : Marginal Costing
Accounts : Marginal CostingAccounts : Marginal Costing
Accounts : Marginal Costing
 
Method of costing
Method of costingMethod of costing
Method of costing
 
Objectives of cost accounting
Objectives of cost accountingObjectives of cost accounting
Objectives of cost accounting
 
Zero Base Budgeting
Zero Base BudgetingZero Base Budgeting
Zero Base Budgeting
 
Classification of cost
Classification of costClassification of cost
Classification of cost
 
Overheads
OverheadsOverheads
Overheads
 
Responsibility accounting
Responsibility accountingResponsibility accounting
Responsibility accounting
 
Types Of Budgets
Types Of BudgetsTypes Of Budgets
Types Of Budgets
 
Management Accounting - Meaning, Definition and Characteristics
Management Accounting - Meaning, Definition and CharacteristicsManagement Accounting - Meaning, Definition and Characteristics
Management Accounting - Meaning, Definition and Characteristics
 
Management accounting
Management accountingManagement accounting
Management accounting
 
Cost accounting
Cost accountingCost accounting
Cost accounting
 
Marginal costing
Marginal costingMarginal costing
Marginal costing
 
Cost Accounting
 Cost Accounting  Cost Accounting
Cost Accounting
 
Elements of cost
Elements of costElements of cost
Elements of cost
 
marginal and absorption costing
marginal and absorption costingmarginal and absorption costing
marginal and absorption costing
 

Semelhante a Cost accounting

Cost Accounting.pptx
Cost Accounting.pptxCost Accounting.pptx
Cost Accounting.pptxDr T.Sivakami
 
Introduction to Cost Accounting
Introduction to Cost AccountingIntroduction to Cost Accounting
Introduction to Cost AccountingDr. Sushil Bansode
 
Chapter 01 introduction OF Cost Accounting
Chapter 01   introduction OF Cost AccountingChapter 01   introduction OF Cost Accounting
Chapter 01 introduction OF Cost Accountingayanthimadhumali
 
chapter01-introduction-180920072820.pptx
chapter01-introduction-180920072820.pptxchapter01-introduction-180920072820.pptx
chapter01-introduction-180920072820.pptxssuserde150e1
 
Introduction of costing , its elements & cost sheet
Introduction of costing , its elements & cost sheetIntroduction of costing , its elements & cost sheet
Introduction of costing , its elements & cost sheetKamlesh Shinde
 
Lpu Text -cost and management_accounting
Lpu  Text -cost and management_accountingLpu  Text -cost and management_accounting
Lpu Text -cost and management_accountingAkhilesh Krishnan
 
ch 1 advanced management accounting.pptx
ch 1 advanced management accounting.pptxch 1 advanced management accounting.pptx
ch 1 advanced management accounting.pptxMohamedAbdi347025
 
Introduction to cost accounting
Introduction to cost accountingIntroduction to cost accounting
Introduction to cost accountingSteffiRozario
 
Subject- AFM-Cost_Accounting_Notes Unit-3.pdf
Subject- AFM-Cost_Accounting_Notes Unit-3.pdfSubject- AFM-Cost_Accounting_Notes Unit-3.pdf
Subject- AFM-Cost_Accounting_Notes Unit-3.pdfManishaDabhade
 
Cost Mgmt_Intro.pptx
Cost Mgmt_Intro.pptxCost Mgmt_Intro.pptx
Cost Mgmt_Intro.pptxssuser6a616c
 
Sma techniques of costing
Sma  techniques of costingSma  techniques of costing
Sma techniques of costingShravya Reddy
 
MANAGERIAL ACCOUNTING.pptx
MANAGERIAL ACCOUNTING.pptxMANAGERIAL ACCOUNTING.pptx
MANAGERIAL ACCOUNTING.pptxrochakkarki1
 
Based on the literatures answer the following questionNo to e.docx
Based on the literatures answer the following questionNo to e.docxBased on the literatures answer the following questionNo to e.docx
Based on the literatures answer the following questionNo to e.docxikirkton
 
Intro to cost accounting
Intro to cost accountingIntro to cost accounting
Intro to cost accountingKunal Singhal
 
Cost control and reduction
Cost control and reductionCost control and reduction
Cost control and reductionShri Theja
 
Cost & management accounting
Cost & management accountingCost & management accounting
Cost & management accountinganu singh
 

Semelhante a Cost accounting (20)

Cost Accounting.pptx
Cost Accounting.pptxCost Accounting.pptx
Cost Accounting.pptx
 
Introduction to Cost Accounting
Introduction to Cost AccountingIntroduction to Cost Accounting
Introduction to Cost Accounting
 
Chapter 01 introduction OF Cost Accounting
Chapter 01   introduction OF Cost AccountingChapter 01   introduction OF Cost Accounting
Chapter 01 introduction OF Cost Accounting
 
chapter01-introduction-180920072820.pptx
chapter01-introduction-180920072820.pptxchapter01-introduction-180920072820.pptx
chapter01-introduction-180920072820.pptx
 
Introduction of costing , its elements & cost sheet
Introduction of costing , its elements & cost sheetIntroduction of costing , its elements & cost sheet
Introduction of costing , its elements & cost sheet
 
Lpu Text -cost and management_accounting
Lpu  Text -cost and management_accountingLpu  Text -cost and management_accounting
Lpu Text -cost and management_accounting
 
ch 1 advanced management accounting.pptx
ch 1 advanced management accounting.pptxch 1 advanced management accounting.pptx
ch 1 advanced management accounting.pptx
 
Introduction to cost accounting
Introduction to cost accountingIntroduction to cost accounting
Introduction to cost accounting
 
Ma unit 2
Ma unit 2Ma unit 2
Ma unit 2
 
Cost Accounting
Cost Accounting Cost Accounting
Cost Accounting
 
Subject- AFM-Cost_Accounting_Notes Unit-3.pdf
Subject- AFM-Cost_Accounting_Notes Unit-3.pdfSubject- AFM-Cost_Accounting_Notes Unit-3.pdf
Subject- AFM-Cost_Accounting_Notes Unit-3.pdf
 
Cost Mgmt_Intro.pptx
Cost Mgmt_Intro.pptxCost Mgmt_Intro.pptx
Cost Mgmt_Intro.pptx
 
Sma techniques of costing
Sma  techniques of costingSma  techniques of costing
Sma techniques of costing
 
MANAGERIAL ACCOUNTING.pptx
MANAGERIAL ACCOUNTING.pptxMANAGERIAL ACCOUNTING.pptx
MANAGERIAL ACCOUNTING.pptx
 
Based on the literatures answer the following questionNo to e.docx
Based on the literatures answer the following questionNo to e.docxBased on the literatures answer the following questionNo to e.docx
Based on the literatures answer the following questionNo to e.docx
 
Cost concept
Cost conceptCost concept
Cost concept
 
Intro to cost accounting
Intro to cost accountingIntro to cost accounting
Intro to cost accounting
 
Cost control and reduction
Cost control and reductionCost control and reduction
Cost control and reduction
 
Cost accounting-ppt
Cost accounting-pptCost accounting-ppt
Cost accounting-ppt
 
Cost & management accounting
Cost & management accountingCost & management accounting
Cost & management accounting
 

Mais de Ekta Patel

Diabetes mellitus
Diabetes mellitusDiabetes mellitus
Diabetes mellitusEkta Patel
 
Pulmonary function test
Pulmonary function testPulmonary function test
Pulmonary function testEkta Patel
 
Evans syndrome
Evans syndromeEvans syndrome
Evans syndromeEkta Patel
 
Idiopathic thrombocytopenic purpura
Idiopathic thrombocytopenic purpuraIdiopathic thrombocytopenic purpura
Idiopathic thrombocytopenic purpuraEkta Patel
 
Hematological disorders
Hematological disordersHematological disorders
Hematological disordersEkta Patel
 
Cancer introduction
Cancer introductionCancer introduction
Cancer introductionEkta Patel
 
Stages of anesthesia
Stages of anesthesiaStages of anesthesia
Stages of anesthesiaEkta Patel
 
Sialolithiasis
SialolithiasisSialolithiasis
SialolithiasisEkta Patel
 
Cholecystitis and cholelithiasis
Cholecystitis and cholelithiasis Cholecystitis and cholelithiasis
Cholecystitis and cholelithiasis Ekta Patel
 
Topical medications administration
Topical medications administrationTopical medications administration
Topical medications administrationEkta Patel
 
Subcutaneous injections
Subcutaneous injectionsSubcutaneous injections
Subcutaneous injectionsEkta Patel
 
Routes of medication administration
Routes of medication administrationRoutes of medication administration
Routes of medication administrationEkta Patel
 
Nursing process
Nursing process Nursing process
Nursing process Ekta Patel
 

Mais de Ekta Patel (20)

Head injury
Head injuryHead injury
Head injury
 
Diabetes mellitus
Diabetes mellitusDiabetes mellitus
Diabetes mellitus
 
Pulmonary function test
Pulmonary function testPulmonary function test
Pulmonary function test
 
Evans syndrome
Evans syndromeEvans syndrome
Evans syndrome
 
Idiopathic thrombocytopenic purpura
Idiopathic thrombocytopenic purpuraIdiopathic thrombocytopenic purpura
Idiopathic thrombocytopenic purpura
 
Hematological disorders
Hematological disordersHematological disorders
Hematological disorders
 
Leukemia
LeukemiaLeukemia
Leukemia
 
Chemotherapy
ChemotherapyChemotherapy
Chemotherapy
 
Cancer introduction
Cancer introductionCancer introduction
Cancer introduction
 
Brain tumor
Brain tumorBrain tumor
Brain tumor
 
Stages of anesthesia
Stages of anesthesiaStages of anesthesia
Stages of anesthesia
 
Sialolithiasis
SialolithiasisSialolithiasis
Sialolithiasis
 
CPR
CPRCPR
CPR
 
Cholecystitis and cholelithiasis
Cholecystitis and cholelithiasis Cholecystitis and cholelithiasis
Cholecystitis and cholelithiasis
 
Anesthesia
AnesthesiaAnesthesia
Anesthesia
 
Topical medications administration
Topical medications administrationTopical medications administration
Topical medications administration
 
Syringe
SyringeSyringe
Syringe
 
Subcutaneous injections
Subcutaneous injectionsSubcutaneous injections
Subcutaneous injections
 
Routes of medication administration
Routes of medication administrationRoutes of medication administration
Routes of medication administration
 
Nursing process
Nursing process Nursing process
Nursing process
 

Último

A3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingA3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingCIToolkit
 
Value Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationValue Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationCIToolkit
 
HR for Non HR_Learning and Development.
HR for Non HR_Learning  and Development.HR for Non HR_Learning  and Development.
HR for Non HR_Learning and Development.azischin
 
Tackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanTackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanStefan Wolpers
 
Forget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsForget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsStephan Koning
 
From Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMFrom Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMGloria Chow
 
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementApplying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementCIToolkit
 
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...AgileNetwork
 
Making Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsMaking Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsCIToolkit
 
Test_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenTest_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenolgaz9
 
What is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfWhat is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfBALASUNDARESAN M
 
How the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioHow the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioChristopher Totten
 
An Important Step Toward Process Improvement
An Important Step Toward Process ImprovementAn Important Step Toward Process Improvement
An Important Step Toward Process ImprovementCIToolkit
 
Analyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingAnalyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingCIToolkit
 
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersEmpowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersMahmoud Rabie
 
Roadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint PresentationRoadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint Presentationgdscghrcem
 
Organizations in a Future with Generative AI
Organizations in a Future with Generative AIOrganizations in a Future with Generative AI
Organizations in a Future with Generative AIKye Andersson
 
Performance Management Notes for MBA Students
Performance Management Notes for MBA StudentsPerformance Management Notes for MBA Students
Performance Management Notes for MBA StudentsManickam Gajapathy
 
Improving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksImproving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksCIToolkit
 

Último (20)

A3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem SolvingA3 Thinking: A Structured Approach to Problem Solving
A3 Thinking: A Structured Approach to Problem Solving
 
Value Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process OptimizationValue Stream Map: A Visual Approach to Process Optimization
Value Stream Map: A Visual Approach to Process Optimization
 
HR for Non HR_Learning and Development.
HR for Non HR_Learning  and Development.HR for Non HR_Learning  and Development.
HR for Non HR_Learning and Development.
 
Tackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna RothmanTackling Fake Agility w/ Johanna Rothman
Tackling Fake Agility w/ Johanna Rothman
 
Forget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outsForget Fiverr : Fractional Employment the ins and outs
Forget Fiverr : Fractional Employment the ins and outs
 
From Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EMFrom Command Line to Reporting Line: The Diary of a First-Time EM
From Command Line to Reporting Line: The Diary of a First-Time EM
 
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous ImprovementApplying the PDCA Cycle: A Blueprint for Continuous Improvement
Applying the PDCA Cycle: A Blueprint for Continuous Improvement
 
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
ANIn Coimbatore March 2024 | Agile & AI in Project Management by Dhilipkumar ...
 
Making Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity DiagramsMaking Sense of Multiple Ideas with Affinity Diagrams
Making Sense of Multiple Ideas with Affinity Diagrams
 
Capacity2 - Briefing and Facilitation training slides
Capacity2 - Briefing and Facilitation training slidesCapacity2 - Briefing and Facilitation training slides
Capacity2 - Briefing and Facilitation training slides
 
Test_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteenTest_document_upload_SQL_minimum_fourteen
Test_document_upload_SQL_minimum_fourteen
 
What is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdfWhat is 5S principles of trainers for training institutions.pdf
What is 5S principles of trainers for training institutions.pdf
 
How the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the StudioHow the Heck do you Teach Level Design? Educating in the Studio
How the Heck do you Teach Level Design? Educating in the Studio
 
An Important Step Toward Process Improvement
An Important Step Toward Process ImprovementAn Important Step Toward Process Improvement
An Important Step Toward Process Improvement
 
Analyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value MappingAnalyzing and Monitoring Processes through Time Value Mapping
Analyzing and Monitoring Processes through Time Value Mapping
 
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging LeadersEmpowering Resilience & Strategic Growth: Insights for Emerging Leaders
Empowering Resilience & Strategic Growth: Insights for Emerging Leaders
 
Roadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint PresentationRoadway to GDSC- Session 1 Powerpoint Presentation
Roadway to GDSC- Session 1 Powerpoint Presentation
 
Organizations in a Future with Generative AI
Organizations in a Future with Generative AIOrganizations in a Future with Generative AI
Organizations in a Future with Generative AI
 
Performance Management Notes for MBA Students
Performance Management Notes for MBA StudentsPerformance Management Notes for MBA Students
Performance Management Notes for MBA Students
 
Improving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba WalksImproving Operations through Observation and Gemba Walks
Improving Operations through Observation and Gemba Walks
 

Cost accounting

  • 1. COST ACCOUNTING Presented By, Ms. Ekta. S. Patel, 2nd Year M.Sc Nursing
  • 4. • Cost accounting is a process of collecting, recording, classifying, analyzing, summarizing, allocating and evaluating various alternative courses of action & control of costs. • Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability. • Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future.
  • 6. • Cost accounting is defined as, “the establishment of budget, slandered cost and actual cost of operation, process, activities or products and analysis of variances, profitability or social use of funds.”
  • 7. • Cost accounting is accounting for cost aimed at providing cost data, statements and reports for the purpose of managerial decision making.
  • 9. • To control cost by using various techniques such as budgetary control, standard costing and inventory control.
  • 10. • To provide information for decision making and planning to formulate operative procedures.
  • 11. • To help in directing and controlling operations.
  • 13. • To motivate to achieve the organization’s goals.
  • 14. • To measures the performance of managers and sub units within the organization.
  • 15. • To provide immediate information regarding stock of raw material, semi finished and finished goods.
  • 16. • To facilitate preparation of financial and other statements.
  • 17. • To help in estimation of cost of future.
  • 19. Cost book keeping: • It involves maintaining complete record of all cost incurred from their incurrence to their change to departments, products and services. Such recording is preferable done on the basis of double entry system.
  • 20. Cost system: • Proper accounting for cost requires systems and procedures.
  • 21. Cost analysis: • It involves the process of finding out the casual factors of actual costs varying from the budget cost and fixation of responsibility for cost increase.
  • 22. Cost control: • Cost accounting is utilization of cost information for exercising control. It involves a detailed examination of each cost in the light of benefit derived from the incurrence of cost.
  • 23. Cost report: • The ultimate function of cost accounting is presentation of reports. These reports are primarily for use by the management at different levels. Cost reports from the basis for planning and control, performance appraisal and managerial decision making.
  • 26. • Help in ascertainment (find out) of cost of process, activity, by using different techniques such as job costing and process costing.
  • 27. • Aids in price fixation by using demand and supply, activities of competitors, market condition to great extend. • The producer can take necessary help from costing records.
  • 28. • Helps in cost reduction by applying cost reduction programme and improved methods are tried to reduce cost. • Elimination of wastage by checking the form of waste such as time and expenses.
  • 29. • Helps in indentifying unprofitable activities such so that the necessary corrective action may be taken. • Helps in checking accuracy of financial account. • Helps in fixing selling process. • Helps in inventory control. • Helps in estimate.
  • 31. • Employees have an interest in which they are employed. An efficient costing system benefits employees through incentives plan in their enterprises.
  • 33. • It is extensive because analysis, allocation and absorption overheads require considerable amount of additional work.
  • 34. • The result shown by cost accountant differ from those shown by financial account.
  • 35. • It involves duplication of work. (Many industrial units function effectively and control the cost effectively with the financial accounting. Preparing cost accounting is unnecessary for them and it involves duplication of accounting work.)
  • 38. • Cost-effectiveness analysis is often used in the field of health services, where it may be inappropriate to monetize health effect. • Typically the CEA is expressed in terms of a ratio where the denominator is a gain in health from a measure (years of life, premature births averted, and sight-years gained) and the numerator is the cost associated with the health gain.
  • 40. • Hülsmann defines cost- effectiveness as “the most efficient way to achieve a set goal.” Essentially, it expresses a balance between attempts to keep costs to a minimum while maximising the outcomes/outputs of an educational institution or programme.
  • 41. • Cost effectiveness is defined as, “the degree to which something is effective or productive in relation to its cost.”
  • 43. Collect baseline data of client. Identify at least 2 alternatives means of achieving the desired outcomes.. Identify the program goal or client outcome to be achieved.
  • 44. Determine the cost associated with each program activity Determine the activities each group of clients will receive. Determine the client charges after the activities are completed, combined with the cost, the amount of activity and outcome information.
  • 45. Compare cost outcome information for each goal to present cost effective analysis.
  • 47. Renewable options Windows Heating and cooling Water heating Insulation and ventilation Appliances Air setting Lighting Low cost no cost improvements and plug load Understanding
  • 49. • It is a tool with great potential for the decision maker so long as he or she can recognises the difficulty in determining the true cost and benefits of various alternatives. This is tool can be especially useful when trying to be decide between alternative expenditure of money. • CBA = (Benefit/Cost)
  • 51. • A cost benefit ratio (Z) is defined as the ratio of the value of benefits of an alternative to the value of alternative cost. • Cost benefit ratio (Z) = PVB/1
  • 53. • Defining problem • Adopting research strategies • Specify audience • Define perspective • Specify timeframe work • Decide the type of study design • Identify the outcome measures or variable
  • 54. • Search for available alternative • Identify the type of the cost to be included in CEA • Analysis
  • 55. The auditing process is very essential process in nursing field at hospital or institutional site. Nurse should require adequate information regarding audit, cost accounting and cost effectiveness to carry out effective administrative and managerial functions. Conclusion: