Cost Accounting - Limitations, Methods and Classification

Limitation of cost accounting :- - 1. It is expensive 2. The system is more complex 3. Inapplicabing of same costing methods & technique 4- No suitable for small scale units 5. Lack of accuracy 6. Overhead allocation -sum total of Indirect expenses cost unit & cost centre cost unit : is a quastitative unit of product or services in dation to which cost are ascertained cost centre: is a location pers op or item of equipment in respect of which Cost may be as certained and related

to cost usits , Techniques of costing :- loistally 1. Absorption costing words .C 2. Marginal costing 3 Historical costing 4. Standard costing 1200 anima 5. Differential + costing beginno a 6. Uniform casting to stand >++ Methods of costing Specific order :- 1- Job costing prillion 2. Batch casting 3. contract cooting 4. cost plus costing Operational casting - tosic 1. output costing barlan I 2. Process costing 3. service casting - composite cashing

Classification cost:- on the basis of element of cast 1. Material 2. Labour Compasty 3. Expenses priters prile 4. Prime cost - sum Directmaterial + Direct labo, + Direat expense 5. overhead motious on the basis of Function to 1. Production cost 2. Administration cast / office 3. Selling 4. Distribution. 5. Research & development east 1) Direct - print 2) Indired