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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)
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
Estimating, Accumulating and Reporting Costs.
Consistency in Allocating Costs.
Proper treatment of unallowable costs.
Consistency in the Accounting Periods used for cost Accounting.
