The Scope of Cost Accounting Is Very Wide and Includes:
- Cost Ascertainment: The main objective of cost accounting is the ascertainment of cost of product or services rendered. It includes collection, analysis of expenses and measurement of production at different stages of manufacture. The collection, analysis and measurement requires different methods of costing for different types of production such as Historical costs, Standard costs, Actual cost, Process cost, Operation cost etc.
- Cost Accounting: It is the process of accounting for cost which begins with the recording of expenditure and ends on the preparation of statistical data. It is a formal mechanism by means of which cost of product or services are ascertained and controlled. The system of recording cost either may be Historical cost or Predetermined cost.
- Cost Control: Cost control is the guidance and regulation by executive action. The aim of control technique is the setting of standard cost before starting of production and compared with the actual at the end of the production.