Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What are the principles and standards of cost accounting ?

user-image
Question added by Siham Amer , Financial Analyst , Noor Al Hikmah Group
Date Posted: 2018/10/28
Hamdy Elnady
by Hamdy Elnady , Accountant , Mekar General Trading CO

1-Consistency in Estimating, Accumulating and Reporting Cos.

2-Consistency in Allocating Costs Incurred for the Same Purpose.

3-Allocation of Home Office Expenses to Segments.

4-Capitalization of Tangible Assets.

5-Accounting for Unallowable Costs.

6-Cost Accounting Period.

7-Use of Standard Costs for Direct Material and Direct Labor.

8-Accounting for Costs of Compensated Personal Absence.

9-Accounting for Costs of Compensated Personal Absence.

10-Allocation of Business Unit General and Administrative Expenses to Final Cost Objectives.

11-Accounting for Acquisition Costs of Material.

12-Composition and Measurement of Pension Costs.

13-Adjustment and Allocation of Pension Cost.

14-Cost of Money as an Element of the Cost of Facilities Capital.

15-Accounting for the Cost of Deferred Compensation.

16-Accounting for Insurance Cost.

17-Cost of Money as an Element of the Cost of Capital Assets Under Construction

18-Allocation of Direct and Indirect Costs

19-Accounting for Independent Research and Development Costs and Bid and Proposal Costs (IR&D and B&P)

Tamer Ebrahim Mohamed
by Tamer Ebrahim Mohamed , مدير مالى , الشركة الهاشمية للمقاولات العامة والتطوير العمراني

Cost accounting standards: -

 

In 1970, the US Congress issued a set of standards for cost accounting that are completely different from international or US accounting standards.

 

1. Consistency, cost-effectiveness and reporting

 

2 - consistency in the allocation of costs incurred for the same purpose

 

3. Allocation of expenditures to the Sectoral Head Office

 

Capitalization of tangible assets

 

5. Accounting for unauthorized costs

 

6. Cost of the accounting period

 

7. Use of standard costs of direct materials and labor

 

8 - Accounting for the costs of personal absence compensated

 

 9. Decrease in the value of physical capital assets

 

10 - Allocate general and administrative expenses to the business unit to reach the cost objectives

 

11. Accounting for the acquisition of materials

 

12. Composition and measurement of retirement costs

 

13. Adjustment and allocation of retirement cost

 

14. Cost of money as a component of capital facilities (implied interest)

 

15. Accounting for deferred compensation costs

 

16. Accounting for insurance costs

 

17. Cost of capital as a component of the cost of capital assets under construction

 

18. Allocation of direct and indirect costs

 

20 - Accounting for the costs of research and development and the submission of offers and bids

 

Principles of Cost Accounting:

 

The principles of cost accounting are not entirely different from the principles of financial accounting but cost accounting may take into account the estimated cost as well as the estimated revenue so it is one of the points of difference between cost accounting and financial accounting

 

احمد السيد
by احمد السيد , رئيس حسابات , مجموعة الزهراني للمقاولات

Estimating, Accumulating and Reporting Costs.

Consistency in Allocating Costs.

Proper treatment of unallowable costs.

Consistency in the Accounting Periods used for cost Accounting.

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.