What is the scope of cost accounting?

Answer 1

Cost accounting is generally thought of in connection with manufacturing operations. Cost accounting in this field has reached its highest development, and its valuable and well proved services to manufacturing concerns amply justify this association. There is no reason, however, to believe that the principles and procedures of cost accounting cannot, with some variations, be applied to other fields.In fact, wherever it is necessary to know the cost of manufacturing a particular product, doing a particular job, rendering a particular services, or investigating efficiency in terms of cost, cost accounting techniques and procedures can be applied with greater benefits.

In additions to its use in the manufacturing operations, another useful area of its application is field of marketing and administration. In this field, the work done is of comparatively recent origin and has not been developed to the same degree of refinement as in the manufacturing field. Much work, investigation and research into procedures and methods in this area are currently being observed.

In short, procedures and techniques developed by cost accounting have been found useful in the fields of banking, insurance, public utilities, motor trucking, departmental stores, hospitals, hotels educational institutions, and even in professional offices, such as doctors, lawyers; Accountants and teachers.