Question - What are the characteristic features of cost accounting?
Answer -
Following are the characteristic features of Cost Accounting:
- Cost accounting views the whole organization from the individual component of the organization like a job, a process etc.
- Cost accounting aims at ascertaining the profitability of individual components of the organization.
- It is meant for those people who are part of the decision making process of the organization. Thus, it is only for internal use.
- It is not a legal requirement. It is not compulsory to maintain cost accounting records.
- In Cost Accounting, data is immediately available which facilitates in decision making process.
- Cost Accounting considers each and every transaction, whether related to past or future which will have an impact on the business.