Cost Accounting and objectives of cost accounting

• Cost and management accounting is one of the branches of accounting,which is developed due to overcome the limitations of the financial Accounting.
• Financial Accounting is primarily concerned with keeping records,directed towards the preparation of Profit and Loss Account and Balance sheet.
• The information provided by preparation of P&L a/c, Balance sheet are not helpful to the management to control the major functions such as production, administration, finance and selling & distribution etc and
• Financial Accounting provides operating efficiency and financial position in general way but not functional wise.
• The development of in the field of Cost Accounting help the management in cost control and cost reduction and also made help to the management in making policies.

Definitions:-
Cost:- cost is an amount of forgone,in order to acquire a particular good or a service.
Costing:- The process or technique of ascertaining cost is called costing.
Cost Accounting:- Cost Accounting is the process of accounting for cost which begins with recording of income and expenditure or the basis on which they are calculated and ends with the preparation of periodical statements and statements and reports for cost ascertaining and controlling costs.
Cost Accountancy:- The application of costing and cost accounting principles methods and techniques to the science arts and practice of cost control and cost ascertainment of profitability it includes the presentation of information derived therefrom for managerial decision making.
Objectives of cost accounting
     The primary objective of study of cost is to contribute to profitability through cost reduction and cost control. Apart from this following are objectives of cost accounting.

1. Ascertainment of cost:- This involves collection of cost information by recording them under suitable heads of account and reporting search information on a periodical basis.
2. Determination of selling price :-selling price is influenced by a number of factors however selling price should not be less than cost price except in exceptional  situations hence cost accounting required for determination of proper selling price.
3. Cost control and cost reduction:- In the long run higher profits can be achieved only through cost control and cost reduction and thereby will get maximum profits for that purpose cost accounting provides Certain techniques.
4. Ascertaining the profit of each activity or product :-profit of each activity or department our product can be determined by comparing revenues with appropriate costs.such information provided by the cost accounting.
5. Assisting management in decision making :-Business decisions are taken after analysing cost and benefit of each option and the manager chooses the least cost option. Thus cost accounting and reporting system helps to the managers in their decision making process.