B Com Exam > B Com Questions > "It has been stated that an efficient costing...
Start Learning for Free
"It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment?
Most Upvoted Answer
"It has been stated that an efficient costing system will not necessar...
Efficient costing system and financial accounts
An efficient costing system is a system that is designed to provide accurate and reliable information about the costs of producing goods or services. The purpose of a costing system is to provide management with information that can be used to make informed decisions about pricing, product mix, and resource allocation.
Differences between costing system and financial accounts
While an efficient costing system is essential for decision-making, it is important to note that it may not always produce accounts that agree with financial accounts. There are several reasons for this:
- Objectives: The objectives of a costing system are different from those of financial accounts. A costing system is designed to provide information for internal management purposes, while financial accounts are prepared for external stakeholders.
- Scope: The scope of a costing system is limited to the cost of production, whereas financial accounts cover a wider range of financial information, including revenue, expenses, assets, and liabilities.
- Timing: A costing system may be based on historical data, while financial accounts are prepared on a periodic basis, usually annually or quarterly. This can result in differences in the information presented.
- Methodology: The methodology used in a costing system may be different from that used in financial accounts. For example, a costing system may allocate costs based on activity-based costing, while financial accounts may use a standard costing methodology.
Conclusion
While an efficient costing system is essential for decision-making, it is important to understand that it may not always produce accounts that agree with financial accounts. The differences between the two are due to differences in objectives, scope, timing, and methodology. Organizations must use both costing systems and financial accounts to gain a complete understanding of their financial performance and make informed decisions.
|
Explore Courses for B Com exam
|
|
"It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment?
Question Description
"It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about "It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for "It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment?.
"It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about "It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for "It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment?.
Solutions for "It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of "It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment? defined & explained in the simplest way possible. Besides giving the explanation of
"It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment?, a detailed solution for "It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment? has been provided alongside types of "It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment? theory, EduRev gives you an
ample number of questions to practice "It has been stated that an efficient costing system will not necessarily produce accounts which in their result will agree with financial accounts"Comment? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup