what are the meaning of Coasting and Cost Accounting ?

         Meaning of Coasting and Cost Accounting

Coasting is a technique and process of  ascertaining costs. This technique consist of principles and rules which govern the procedure  of ascertaining the cost of product/services. The process of  costing includes routines of ascertaining cost by historical or conventional costing, standard costing or marginal costing. 

          Cost Accounting is the classifying, recording and appropriate  allocations of expenditure for the determination of the cost of product or services, and for the presentation of suitable arrange data for purposes of control and guidance of management.It includes thee ascertainment of the cost of every order,job,contract,process,service or unit as may  be appropriate . It deals with the cost of production , selling and distribution . It  is thus the provisions of such analysis and classification of expenditure as will enable the total cost of any particular unit of production or service to be ascertain with reasonable degree  of accuracy and at the same time to disclose exactly how such total cost is constitute (i,e the value of material used, the amount of labour and other expenses  incurred ) so as to control and reduce its cost . According to Wheldon, "cost accounting is the application of accounting and costing principles, method and techniques in the ascertainment of cost and the analysis of saving/or excess cost incurred as compared with previous experience or with standards". Thus cots accounting  relates to the collection , classification , ascertainment of cost  and its  accounting and control relating to the various element of cost . It establishes budgets and standard costs and actual cost of operation,processes , department  or products and the analysis of variances , profitability and social use of fund.



          Thus, cost  accounting has the following feature :

• It is a process of accounting for costs.
• It record income and expenditure relating to production of  good and services.
• It provides statistical data on the basis of which future estimate are prepare and quotations are submitted.
• It is concerned with cost ascertainment, cost  control and cost reduction.
• It establishes budgets and standards so that actual cost may be compared to find out deviations or variances.
• It involves the presentation of right information  to the right person at the right time so that it may be helpful to management for planning, evaluation of performance, control and decision making.