Installation of cost system

It is a system of rules, procedures, cost records for the purpose of achieving specified objective at minimum cost. In order to minimise cost effective costing system is must. Here, we are going to study, steps and difficulty faced in installation of costing system.

1. Pooja Kumari Assistant Professor CMG GCW Bhodiakhera , Fatehabad Cost Accounting Installation of Costing System

2. Installation of Costing System It is a system of rules, procedures, cost records for the purpose of achieving specified objective at minimum cost. Its an investment rather expense

3. Process of Installation of Costing System

4. Requirement for Costing System

5. General Considerations Objective of installation the system Areas of Operation Organisation of the business Conception and reception of the idea Collection of data and prompt information Cost records and cost books Costing methods Responsibility accounting

6. Specific Consideration Size and nature of business Products Organization Functional study

7. Principle for Smooth Working Simple and easy Flexible Gradual changes Managers and executive should be taken under confidence to avoid criticism.

8. Line of Action Finalise forms, cards format Fix various issues like storing and issue of material Fix issues related to labour cost like overtime, job evaluation, bonus computation etc. Decide about budget and standards Decide about books of cost control