A management needs asset for its business and it is always recorded in the financial reports. Cost accounting used by managements internally for full informed business decisions. It is a financial statement that allows to identify variable and fixed cost related to production. Principles include, establishing a cause effect relationship for each item of cost. Unit cost is to be included to that costs which have been actually incurred. Past costs are not supposed to get recovered from future costs, because this can not only affect true results of future but also can distort other statements. Costs incurred due to abnormal conditions are not supposed to be taken into consideration. To decrease the chance of errors, the ledgers and accounts are maintained on double entry principle. This can ensure correctness of cost statements which are prepared for cost control and ascertainment. More details can be obtained from the presentation.

Abhijith S

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