Gernot Heiser was born in 1957.

Francis Heiser died in 1952.

Bill Heiser was born on 1973-01-13.

Roy Heiser was born on 1942-07-22.

C. B. Heiser has written:

'Of plants and people'

Joseph M Heiser has written:

'Logistic support'

Roy Heiser was born June 22, 1942, in Baltimore, MD, USA.

A person who you have no buisness searching up!

Roy Heiser is 6 feet 4 inches tall. He weighs 190 pounds. He bats right and throws right.

E. William Heiser has written:

'Sixty years with East Bend' -- subject(s): Mennonites, East Bend Mennonite Church (Fisher, Ill.), History

Roy Heiser debuted on September 2, 1961, playing for the Washington Senators at Griffith Stadium II; he played his final game on September 11, 1961, playing for the Washington Senators at Griffith Stadium II.

In 1961, Roy Heiser played in 3 games for the Washington Senators, batting in all of them. He had 2 at bats, getting 0 hits, for a .000 batting average, with 0 runs batted in. He was walked 0 times. He struck out 1 times.

In 1961, Roy Heiser played in 3 games, all for the Washington Senators, and batting in all of them. He had 2 at bats, getting 0 hits, for a .000 batting average, with 0 runs batted in. He was walked 0 times. He struck out 1 times.

Charles B. Heiser has written:

'Of plants and people' -- subject(s): Botany, Economic, Cultivated Plants, Economic Botany, Ethnobotany, Folklore, Plants, Cultivated

'Nightshades (A Series of books in biology)'

'The North American sunflowers (Helianthus)' -- subject(s): Botany, Helianthus

'Weeds in My Garden'

The cast of Ancient Aliens Debunked - 2012 includes: Michael Heiser as himself

Justin Bremer is one of his children, he is married to Allison Heiser and they have a child together. She is my cousin .

The cast of Nerd Perfect - 2009 includes: Nikolei Bosshardt Oliver Goetschel Christopher Heiser

The cast of MCW Rage TV - 2001 includes: Jimmy Cicero as himself Jessika Heiser as Jessika

Roy Heiser played in 3 games at pitcher for the Washington Senators in 1961, starting in none of them. He played for a total of 17 outs, equivalent to .63 9-inning games.

He made no putouts, had no assists, and committed one error, equivalent to 1.588 errors per 9-inning game. He had no double plays.

In 1961, Roy Heiser pitched in 3 games for the Washington Senators, with an ERA of 6.35. He started 0 games and finished 2, pitching no complete games. He threw no shutouts and recorded no saves, ending up with 0 wins and 0 losses.

He pitched a total of 17 outs, facing 33 batters. He gave up 6 hits and 4 earned runs, including 1 home run. He struck out 1 batter and walked 9.

The cast of Maybe - 2011 includes: Christopher Eric Green as Jim Foster Margaret Hansotte as Sam Brian Heiser as Gym Member Tyler Hooks as Barista Donnie Jenkins as Coffee Shop Guy Lee Meier as Rachel Nito Meier as Steve

The cast of Courage Too Late - 2011 includes: Chris Becker as German Scout Alex Candelori as Danilo Ted Dyer as Oberst Christopher Heiser as Denis Tim Kaljans as Konstantin Amanda Kay Schill as Nastya Gerhard Laemmle as Leutnant Nick Martorelli as Gregory Steve Pepper as Igor Jim Speece as Maksim

The cast of Die Staatskanzlei - 1989 includes: Uwe Barschel as himself Edgar Bessen Joachim Dietmar Mues Gerhard Garbers Grischa Huber as Irmlind Heiser Siegfried Kernen Hermann Lause as Reiner Pfeiffer Dietrich Mattausch as Klingner Inge Meysel Dieter Prochnow Christoph Quest Angelika Thomas Ulrich Wildgruber

The term upcall is typically used in the context of using a framework, such as CORBA. When a request is sent from a client application to a server application, the framework is responsible for data marshalling, data transmission, and notification of the recipient that a request has been issued. An upcall is the call into the user code from the framework. This is typically supported through the use of a registered callback function registered either directly by the user, or indirectly through the mechanisms of the framework. An upcall is also called a callback.

The cast of American Mayor - 2009 includes: Larry Heiser as Himself - Auditor, City of Bexley Mark Lammers as Himself - Producer Matt Lampke as Himself - Candidate for Mayor Mark Masser as Himself - City Council, City of Bexley Steve Mauer as Himself - Former 24 year-old Mayor Bill Minckler as Himself - Candidate for Mayor Winkles the Squirrel as Himself - Candidate for Mayor Geoff Todt as Himself - Campaign Volunteer Scott Weinblatt as Himself - Candidate for Mayor Gene Weiss as Himself - Candidate for Mayor Marlene Wirth as Herself - Franklin County Board of Elections

: :* Nicolas Cage .... Randy :* Deborah Foreman .... Julie Richman :* E.G. Daily .... Loryn (as Elizabeth Daily) :* Michael Bowen .... Tommy :* Cameron Dye .... Fred Bailey :* Heidi Holicker .... Stacey :* Michelle Meyrink .... Suzi Brent :* Tina Theberge .... Samantha :* Lee Purcell .... Beth Brent :* Richard Sanders ... Driver's Ed Teacher :* Colleen Camp .... Sarah Richman :* Frederic Forrest .... Steve Richman :* David Ensor .... Skip :* Tony Plana .... Low Rider :* Joyce Hyser .... Joyce (as Joyce Heiser) :* The Plimsouls .... Themselves :* Peter Case .... Himself :* Bill Harris .... Guy at Prom :* Joanne Baron .... Miss Lieberman, Prom Teacher

The cast of Life Is Boring - 2013 includes: Scott Beehner as Andy Van Winkle Brian Burnett as Alan Annamarie Davidson as Courtney Vanessa Donley as Tessa Crane Chip Godwin as Pud McQueen Christine Haeberman as Mary Gressil Joseph Heiser as Cheetah Guillermo Jorge as The Little Boy Scout Emily McGahee as Wendy Matt Micucci as Brett Nick Paliokas as Henry Gressil Jeff Sands as Micah Will Starr as Randall Justin Streichman as Duncan Sean Sweeney as Landlord Dick Van Dyke as Hundred Year-Old Man Cheke Whitfield as Bartender Alison Zatta as Lynnie

The cast of Once Upon a Jedi - 2004 includes: April Billingsley as April Brian Boling as Boba Fett Adam Boyer as Mr.Anderson Jimmy Burns as TK 1025 Storm Trooper Jacob Bush as Student Lane Carlock as Ms. Herzbaucher Hilton Garrett as Bully Taylor Gillen as Student Donald Glenn Dekle as TK 6152 Storm Trooper Brian Heiser as Alien Ian Mastrogiacomo as Eric Dork John Pardus as TK 3174 Storm Trooper Rachel Pendergrass as Student Eve Sanders as Student Keith Seedorf as TK 0811 Storm Trooper Edward Solis as Jesse Geek Minnie Tee as Alien William Zoon as TK 2359 Storm Trooper

Mr. Heiser claims that the word Elohim in Hebrew, meaning "gods" is not a plural word. His main proof is that it says in Hebrew "The Elohim Said" in a singular form not a plural form. This would indicate that the word Elohim was a name and not meaning plural gods. Of course this also could mean that the scribes of the Bible kept it in a singular form to show the monotheistic viewpoint. There are many uses of the plural term of the word Elohim in the Bible. I have listed several plural forms below and it is in fact very hard to find any singular uses of the word.

The word Elohim is definitely plural and does indeed mean "gods" and it actually contains two forms of the singular word for God inside of itself.

1. The word EL means God and it is the first part of the word Elohim.

2. The word Eloah, also means God and it is the first part of the word Elohim. Eloah in Hebrew is a three letter root which most Hebrew words contain.

Here we already have two singular forms of the word God inside the plural word Elohim. Yet, Mr. Heiser has never mentioned these singular forms inside the plural word. He still insists Elohim is singular knowing well that is already contains two singular words for God.

The Universal Creator God of the Bible known as Yahweh speaks and is quoted within the Bible. When he spoke to the ancient Hebrews while giving them the 10 commandments, he indeed used the plural word of Elohim meaning gods.

The Christians mantain the Trinity as the Father the Son and the Holy ghost (Saint Spirit)

as the main identities of the heavens.

The best information I found so far is in this book: Michael S. Heiser: Introduction to the Divine Council. The book is probably still in progress, but you can read part of it on his website. http://www.thedivinecouncil.com/

He calls those divine beings "elohim". The Hebrew word elohim all by itself can refer to either "God" (capitalized, the God of Israel) or "gods" (other divine beings).

The word elohim more broadly does not refer to "deity attributes." Rather, it points to a plane of existence. An elohim is simply a being whose proper habitation is the spirit world.

He starts to explain the history of this divine beings with the warning: read prayerfully and closely, because you'll never look at your Bible the same way again once you meet God's original heavenly family---the sons of God.

He is also the author of a paranormal thriller "The Facade"

http://www.facadethebook.com/

His main website is http://www.michaelsheiser.com/

Grischa Huber has: Performed in "Winterreise im Olympiastadion" in 1970. Played Vampira in "Vampira" in 1971. Played Studentin in "Der Angestellte" in 1972. Played Grischa in "Unter dem Pflaster ist der Strand" in 1975. Played Ulrike von Kleist in "Heinrich" in 1977. Performed in "Io sono mia" in 1978. Played Hannah in "Malou" in 1981. Performed in "Die Liebesforscherin" in 1985. Played Eliana in "Die Kolonie" in 1987. Played Irmlind Heiser in "Die Staatskanzlei" in 1989. Played Dagmar in "Ein gemachter Mann" in 1989. Played Carla in "Die Kinder" in 1990. Performed in "Das alte Lied..." in 1992. Played Gudrun in "September" in 2003. Played Mutter in "Schwesterherz" in 2006. Played Frau Adler in "Mord in aller Unschuld" in 2008. Played Yvonne in "Hurenkinder" in 2008. Played Linda Schiller in "SOKO Stuttgart" in 2009. Played Ehefrau im Kempinski in "Hilde" in 2009. Played Rita Lackner in "Drei in einem Bett" in 2013.

The HymNuts are a jazz and gospel-jazz band based in Olathe, Kansas. Current members include three founding members, Charles Moore, keyboards, Carl Kincaid, tenor, alto and soprano sax, and Anthony Dominguez, drums, along with current members Keith Larson, percussion and drums, and Mark Doljac, bass. Former members include Tim Heiser, keyboards, Randy Gaylord, bass and Dan Butko, bass. The band has also featured a variety of vocalists and instrumentalists. The HymNut's repetoire includes bebop and jazz standards by Miles Davis, Herbie Hancock, Charlie Parker, Nat Adderley, Duke Ellington, Joe Zawinul, George Gershwin and Horace Silver, songs by Steely Dan, Bill Withers, and original songs and original jazz arrangements of hymns. In 2009, the HymNuts released its debut CD, "The HymNuts Live at BVBC," and a bootleg of a live performance at the Lansing Correctional Facility in Lansing, KS in 2009, "The HymNuts Live in Cell Block C" remains a favorite of the band's most avid fans.

The cast of Paranormal State - 2007 includes: Mary Beth Wylie as herself Adam Blai as Himself - Psychologist Ryan Buell as himself Ryan Buell as Himself - PRS Director Chad Calek as himself Chip Coffey as himself Chip Coffey as Himself - Medium Robert Greiner as Himself - Kreider Family Descendent Ryan Heiser as Himself - PRS Member Daniel Hendry as himself Christopher Lien as himself Nathaniel Lien as himself Savahanna Lien Wise as herself Josh Light as himself Pamela Munro as herself Eilfie Music as herself Eilfie Music as Herself - Occult Specialist Eilfie Music as Occult Specialist. Sergey Poberezhny as himself Sergey Poberezhny as Himself - Tech Specialist Paige Russell as herself Ashton Russell as himself John Sabol as himself Shelley Seighman as Herself - PRS Subject Matthew Seighman as Himself - PRS Subject Tony Spera as Himself - Demonologist Shannon Sylvia as Herself - Client Heather Taddy as herself Heather Taddy as Herself - Team Documentarian Richard Wajda as Ghost Hunter Katrina Weidman as herself Katrina Weidman as Herself - Trainee Steven Wise as himself

Statistics is applied in various fields such as business for market research and financial analysis, healthcare for clinical trials and epidemiological studies, sports for performance analysis and player evaluation, and social sciences for surveys and data analysis. It is also used in education for evaluating student performance and program effectiveness, and in government for policy making and resource allocation.

The cast of Wild Animal ER - 2008 includes: Liz Addison as Herself - Volunteer Jacqui Ashby as Herself - Foster Carer Dorothy Beeson as Herself - Owner, The Swan Sanctuary Katy Bennett as Herself - Nurse Abby Bruce as Herself - Nurse Francesca Campanaro as Herself - Nurse Clare Campbell as Herself - Head Nurse Sarah Close as Herself - Nurse Charlie Dodd as Himself - Resident Andy Eddy as Himself - RSPCA Andy Eddy as Himself - RSPCA Officer Shiria Gittings as Herself - Nurse Sally Goulden as Herself - Swan Sanctuary Vet Vicky Hatton as Herself - Nurse Judy Heiser as Herself - Foster Carer Sarah Huitson as Herself - Student Melanie Kingham as Herself - Receptionist Sally Lloyd as herself Dennis Lovell as Himself - RSPCA Jonathan Mogg as Himself - Boat Owner Cyril Newton as Himself - Resident Yasmin Ponnampalam as Herself - Student Kate Sanderson as Herself - Presenter Sue Stocker as Herself - Co-Founder, Tiggywinkles Les Stocker as Himself - Head, Tiggywinkles Tina Swindle as Herself - Clinical Manager Paul Verney as Himself - Station Commander Kym Walker as Herself - Resident Heather Wederell as Herself - Resident Trevor Weeks as Himself - East Sussex WRAS

Sonja Henie has: Played herself in "Se Norge" in 1929. Played Greta Muller in "One in a Million" in 1936. Played Sonja Henie - at Fictional Premiere in "Ali Baba Goes to Town" in 1937. Played Lili Heiser in "Thin Ice" in 1937. Played Trudy Ericksen in "Happy Landing" in 1938. Played Kristina Nielsen in "My Lucky Star" in 1938. Played herself in "Screen Snapshots Series 18, No. 8" in 1939. Played Trudi Hovland in "Second Fiddle" in 1939. Played Louise in "Everything Happens at Night" in 1939. Played herself in "Til Vesterheimen" in 1939. Played herself in "Sports Immortals" in 1939. Played Karen Benson in "Sun Valley Serenade" in 1941. Played Katina Jonsdottir in "Iceland" in 1942. Played Nora Ostgaard in "Wintertime" in 1943. Played herself in "Toast of the Town" in 1948. Played Karen Kirsten in "The Countess of Monte Cristo" in 1948. Played Cameo in "Camera Angles" in 1948. Played Herself - Hostess in "Four Star Revue" in 1950. Played Herself - Skater in "The Colgate Comedy Hour" in 1950. Played Herself - Guest in "Max Liebman Presents: Spotlight" in 1954. Played herself in "A Star Is Born World Premiere" in 1954. Performed in "Holiday on Ice" in 1956. Played herself in "Hello London" in 1958. Played herself in "Hollywood and the Stars" in 1963. Played herself in "Bilder aus Kalifornien" in 1969. Played herself in "I Miss Sonia Henie" in 1971. Played herself in "Fred Astaire Salutes the Fox Musicals" in 1974. Played herself in "Biography" in 1987. Played Greta Muller in "Biography" in 1987. Played herself in "Sonja Henie: Queen of the Ice" in 1995. Played herself in "Hidden Hollywood: Treasures from the 20th Century Fox Film Vaults" in 1997. Played herself in "Hidden Hollywood II: More Treasures from the 20th Century Fox Vaults" in 1999.

Hugo Adolf Bernatzik was an Austrian anthropologist, explorer, and photographer. He is known for his ethno-photographic work in Southeast Asia and the Pacific Islands, as well as for his publications documenting the cultures and societies of these regions.

Robert Phalen has: Played Grekov in "Great Performances" in 1971. Played Capt. Ronald Dupre in "Barney Miller" in 1974. Played Will Dunning in "The Rockford Files" in 1974. Played Mickey Maloy in "A Touch of the Poet" in 1974. Played Hurell in "Baretta" in 1975. Played Newberry in "Three Days of the Condor" in 1975. Played Jim Baker in "The Jeffersons" in 1975. Played John C. Calhoun in "The Adams Chronicles" in 1976. Played Lawyer in "The Tony Randall Show" in 1976. Played Rufus Jackson in "Roots" in 1977. Played Harold Agee in "Lou Grant" in 1977. Played Habitat Technician in "Man from Atlantis" in 1977. Performed in "The Trial of Lee Harvey Oswald" in 1977. Played Minister in "Secrets" in 1977. Performed in "Corey: For the People" in 1977. Played Sgt. Holt in "A Killing Affair" in 1977. Performed in "Eight Is Enough" in 1977. Played Rev. Holly in "Centennial" in 1978. Played KGIM Newsreader in "Dallas" in 1978. Performed in "Richie Brockelman, Private Eye" in 1978. Played Doug Batty in "The White Shadow" in 1978. Played Dr. Terence Wynn in "Halloween" in 1978. Played Foster Father in "Just You and Me, Kid" in 1979. Played Yarmack in "Nero Wolfe" in 1979. Played Bill Westfield in "Hart to Hart" in 1979. Played Benny Petulsky in "Hart to Hart" in 1979. Played Mr. Barnett in "Benson" in 1979. Played Lipton in "The Dukes of Hazzard" in 1979. Played Carlisle in "Knots Landing" in 1979. Played Weems in "A Man Called Sloane" in 1979. Played Arnold Jensen in "The Facts of Life" in 1979. Played Michaels in "Magnum, P.I." in 1980. Played Arnold Overstratten in "The Last Song" in 1980. Played Marv in "Hill Street Blues" in 1981. Played District Attorney in "Zoot Suit" in 1981. Played Attorney for Heiser in "Hill Street Blues" in 1981. Played Foreman in "The Killing of Randy Webster" in 1981. Played Ambrose Blinn in "Remington Steele" in 1982. Played Dr. Blair in "Hotel" in 1983. Played Pete Briggs in "Highway to Heaven" in 1984. Played Dr. Paulson in "Anatomy of an Illness" in 1984. Played Major Bell in "Starman" in 1984. Played Dr. Maxwell in "The Gladiator" in 1986. Played Judge Lemuel Collins in "L.A. Law" in 1986. Played Gary Watson in "Under the Influence" in 1986. Played Incinerator Booster in "thirtysomething" in 1987. Played Drunk in "An Enemy of the People" in 1990. Played Coroner in "Impulse" in 1990. Played Loan Officer in "Homefront" in 1991. Played Man in "1775" in 1992. Played Andrei Ivanov in "Babylon 5" in 1994.

Aldo Ray has: Played himself in "Toast of the Town" in 1948. Played Intermission Guest in "Lux Video Theatre" in 1950. Played Himself - Intermission Guest in "Lux Video Theatre" in 1950. Played Theron Henchman in "The Barefoot Mailman" in 1951. Played State Trooper in "Never Trust a Gambler" in 1951. Played Mark Foster in "My True Story" in 1951. Played Davie Hucko in "Pat and Mike" in 1952. Played himself in "The Tennessee Ernie Ford Show" in 1956. Played Himself - Men In War in "The Steve Allen Show" in 1956. Played James Vanning in "Nightfall" in 1957. Played Sgt. Montana (Joseph R. Willomet) in "Men in War" in 1957. Played Harold Tibbetts in "Westinghouse Desilu Playhouse" in 1958. Played Elvin Rhodes in "Naked City" in 1958. Played Leif Jessup in "Bonanza" in 1959. Played Hunk Farber in "Riverboat" in 1959. Played Heiser in "Bonanza" in 1959. Played Matt Kirk in "The Siege of Pinchgut" in 1959. Played Charles Norgate in "The Day They Robbed the Bank of England" in 1960. Played Himself - Audience Member in "The 32nd Annual Academy Awards" in 1960. Played Toby Mills in "Frontier Circus" in 1961. Played Johnny Nobody in "Johnny Nobody" in 1961. Played Frank Alusik in "Ben Casey" in 1961. Played Louis Mastroanni in "Alcoa Premiere" in 1961. Played Moreau in "I moschettieri del mare" in 1962. Played Frank Krause in "The Virginian" in 1962. Played Sam Kimber in "Kraft Suspense Theatre" in 1963. Played Moose in "Bob Hope Presents the Chrysler Theatre" in 1963. Played himself in "The Eamonn Andrews Show" in 1964. Played Benton in "Daniel Boone" in 1964. Played Jonas Karoki in "Sylvia" in 1965. Played Sheriff in "Nightmare in the Sun" in 1965. Played Vince Murdock in "Run for Your Life" in 1965. Played Eddie Hart in "Dead Heat on a Merry-Go-Round" in 1966. Played Georgie Cutler in "The Danny Thomas Hour" in 1967. Played Vigo in "Kill a Dragon" in 1967. Played Lieutenant Walt Lorimer in "Riot on Sunset Strip" in 1967. Played Man from Bodie in "Welcome to Hard Times" in 1967. Played Joe Vorzyck in "The Violent Ones" in 1967. Played Eddie Wolfe in "The Outsider" in 1968. Played Sgt. Muldoon in "The Green Berets" in 1968. Played Sergeant Cloadec in "Commando suicida" in 1968. Played Aldo Ray in "Silent Treatment" in 1968. Played Major Comack in "A Torn Page of Glory" in 1968. Played Bruce in "The Power" in 1968. Played Joe Gavanelli in "Marcus Welby, M.D." in 1969. Played Herb (segment "Love and the Advice-Givers") in "Love, American Style" in 1969. Played Edward Logan in "The Bold Ones: The Protectors" in 1969. Played Sheriff in "Angel Unchained" in 1970. Played Mussel Mutt in "The Houndcats" in 1972. Played Lt. Stans in "Tom" in 1973. Played Capt. Eagle in "Police Story" in 1973. Played Dr. Dutch in "Seven Alone" in 1974. Played Burke in "Dynamite Brothers" in 1974. Played Ed Walker in "The Centerfold Girls" in 1974. Played Cop in "Promise Him Anything" in 1975. Played Lt. Dave Anderson in "Psychic Killer" in 1975. Played Frank Keefer in "The Man Who Would Not Die" in 1975. Played Ralph Costas in "S.W.A.T." in 1975. Played Mimmo, Stage Robber in "Gone with the West" in 1975. Played Chippy in "The Quest" in 1976. Played Stubby Stebbins in "Won Ton Ton: The Dog Who Saved Hollywood" in 1976. Played Andrew in "Haunted" in 1977. Played Sheriff in "Haunts" in 1977. Played Karl Beasley in "CHiPs" in 1977. Performed in "Mission to Glory: A True Story" in 1977. Performed in "Paesano: A Voice in the Night" in 1977. Performed in "The Lucifer Complex" in 1978. Played Verde in "Death Dimension" in 1978. Played Tiny in "The Glove" in 1979. Played Mat Tibbs in "Human Experiments" in 1979. Played Banner in "Sweet Savage" in 1979. Played Narrator in "Sam Fuller and the Big Red One" in 1979. Played Frederick Thaler in "Women in White" in 1979. Played Sheriff Burgess in "The Great Skycopter Rescue" in 1980. Played The Manager in "When I Am King" in 1981. Played Phil McLish in "Falcon Crest" in 1981. Played Sullivan in "The Secret of NIMH" in 1982. Played Lew in "Boxoffice" in 1982. Played Larry Craig in "Dark Sanity" in 1982. Played Bouchard in "Mongrel" in 1982. Played Sheriff Neal Rydholm in "Bog" in 1983. Played Police Commissioner in "The Executioner, Part II" in 1984. Played Fred in "Evils of the Night" in 1985. Performed in "Flesh and Bullets" in 1985. Played General Randolph in "Biohazard" in 1985. Played The Inquistor in "Prison Ship" in 1986. Played Inspector Benedict in "To Kill a Stranger" in 1987. Played Frank Morris in "Terror on Alcatraz" in 1987. Played Don Siano of Bisacquino in "The Sicilian" in 1987. Played Mr. Fong in "Hollywood Cop" in 1987. Played Wally in "Vultures" in 1987. Played Capt. Ned in "Terror Night" in 1987. Played Victor Lazzaro in "Drug Runners" in 1988. Played Gene Krebelski in "Night Shadow" in 1989. Played General Makepeace in "Shooters" in 1989. Played Father Stassio in "Blood Red" in 1989. Played Sheriff Benny in "Hateman" in 1989. Played Johnson in "Crime of Crimes" in 1989. Performed in "Young Rebels" in 1992.

Howard Wendell has: Performed in "Colgate Theatre" in 1949. Performed in "Fireside Theatre" in 1949. Performed in "NBC Presents" in 1949. Played The Druggist in "The George Burns and Gracie Allen Show" in 1950. Played Mr. Downs in "The George Burns and Gracie Allen Show" in 1950. Played Professor Ainsworth in "The George Burns and Gracie Allen Show" in 1950. Played Mr. Weatherby in "The George Burns and Gracie Allen Show" in 1950. Played Mr. Martindale in "The George Burns and Gracie Allen Show" in 1950. Played Professor Tavelman in "The George Burns and Gracie Allen Show" in 1950. Played Minister in "The Jack Benny Program" in 1950. Performed in "The Jack Benny Program" in 1950. Played Davis in "Lux Video Theatre" in 1950. Performed in "The George Burns and Gracie Allen Show" in 1950. Performed in "Big Town" in 1950. Played Mr. Evans in "The George Burns and Gracie Allen Show" in 1950. Performed in "Dragnet" in 1951. Played George Comanches in "Dragnet" in 1951. Played Preacher in "The Red Skelton Show" in 1951. Played Jasper Biggs in "Dragnet" in 1951. Played Ralph Grismore in "Dragnet" in 1951. Performed in "Schlitz Playhouse of Stars" in 1951. Played Anderson in "Affair in Trinidad" in 1952. Played Oliver Wherry in "You for Me" in 1952. Performed in "Cavalcade of America" in 1952. Played Bidell in "City Detective" in 1953. Played Congressman John Adams in "You Are There" in 1953. Played Jack in "You Are There" in 1953. Played Mr. Dilts in "Captain Scarface" in 1953. Played Mr. Laugherty in "Letter to Loretta" in 1953. Played Mr. Morrison in "Letter to Loretta" in 1953. Played Watson in "Gentlemen Prefer Blondes" in 1953. Performed in "The Pepsi-Cola Playhouse" in 1953. Played Police Commissioner Higgins in "The Big Heat" in 1953. Played John H. Harris in "By the Light of the Silvery Moon" in 1953. Played Commodore George Dewey in "You Are There" in 1953. Played William Seward in "You Are There" in 1953. Played Judge Horatio Baker in "The Black Dakotas" in 1954. Played Morgan Todd in "Prince Valiant" in 1954. Played Fred Miller in "The Adventures of Falcon" in 1954. Played Jeremiah Wheeler in "The Adventures of Rin Tin Tin" in 1954. Played Doctor in "Public Defender" in 1954. Played Ben Forman in "Public Defender" in 1954. Played Mr. Grenville in "Athena" in 1954. Played Judge Brooking in "Gunsmoke" in 1955. Played Tarkey Granger in "The Life and Legend of Wyatt Earp" in 1955. Played Lucky Jim Morrison - Horse Owner in "The Fighting Chance" in 1955. Played Prison chaplain in "Wiretapper" in 1955. Played C. F. Walters in "The Millionaire" in 1955. Played William Seward in "Screen Directors Playhouse" in 1955. Played Rear Admiral Porter in "Navy Log" in 1955. Played Henry Dart in "The Life and Legend of Wyatt Earp" in 1955. Played Judge in "Stage 7" in 1955. Played Judge in "Gunsmoke" in 1955. Played Ed Loomis in "Front Row Center" in 1955. Played 1st Senator in "Screen Directors Playhouse" in 1955. Played Mike Teague in "The Life and Legend of Wyatt Earp" in 1955. Played Senator Mike Teague in "The Life and Legend of Wyatt Earp" in 1955. Played Mr. Hammond in "The 20th Century-Fox Hour" in 1955. Played Dr. Proctor in "Front Row Center" in 1955. Played Hotel Manager in "The 20th Century-Fox Hour" in 1955. Played Sen. Bascomb in "Storm Center" in 1956. Played Doctor in "Broken Arrow" in 1956. Played Col. Elwood Scott in "The Adventures of Jim Bowie" in 1956. Played Mr. Hedrich in "Playhouse 90" in 1956. Played Dr. C. Mathew Dooling in "Mike Hammer" in 1956. Played Edwin Hatrick in "Sheriff of Cochise" in 1956. Played 1st Bar Patron in "Sheriff of Cochise" in 1956. Played Harry in "Never Say Goodbye" in 1956. Played Vanryzin in "A Day of Fury" in 1956. Played Dr. Mussey in "Telephone Time" in 1956. Performed in "Telephone Time" in 1956. Played Don Marcos in "Zorro" in 1957. Played Judge Brian C. Purley in "Perry Mason" in 1957. Played A. J. Randall in "Perry Mason" in 1957. Played Mr. Crane in "Suspicion" in 1957. Performed in "The George Sanders Mystery Theater" in 1957. Played Mr. Haller in "Leave It to Beaver" in 1957. Played L.M. Tucker in "Suspicion" in 1957. Played Arthur Daniels in "Bachelor Father" in 1957. Played Don Marcos Cotazar in "Zorro" in 1957. Played Father Allbright in "Wagon Train" in 1957. Played Barrett in "M Squad" in 1957. Played Taylor in "The Restless Gun" in 1957. Played Edward in "The Ann Sothern Show" in 1958. Played Mr. Reeves in "Mister Ed" in 1958. Played Doc Morton in "The Texan" in 1958. Played Henry Kramer in "U.S. Marshal" in 1958. Played George Heiser in "The Donna Reed Show" in 1958. Played Mr. Daughter in "The George Burns Show" in 1958. Played George Helser in "The Donna Reed Show" in 1958. Played Howard Hansen in "Mardi Gras" in 1958. Played Dr. Fosdick, Sr. in "Mister Ed" in 1958. Played Willis in "Bonanza" in 1959. Played Hennessy in "Bonanza" in 1959. Played Congressman in "A Stranger in My Arms" in 1959. Played Albright in "Bonanza" in 1959. Played Senator Charles McDermott in "Dennis the Menace" in 1959. Played Purchasing in "It Happened to Jane" in 1959. Played Porteous in "Rawhide" in 1959. Played Webb in "The Deputy" in 1959. Played Dr. George Bradford in "The Four Skulls of Jonathan Drake" in 1959. Played Sexton in "The Remarkable Mr. Pennypacker" in 1959. Played Banker in "Bonanza" in 1959. Played Doctor Wycoff in "Dante" in 1960. Played Uncle Hartley in "The Tab Hunter Show" in 1960. Played Mr. Page in "Surfside 6" in 1960. Played Judge in "Pete and Gladys" in 1960. Performed in "Angel" in 1960. Played Doctor in "Alcoa Premiere" in 1961. Played Judge George M. Tyler in "The Dick Van Dyke Show" in 1961. Played Mr. Morgan in "Westinghouse Playhouse" in 1961. Played Mr. Bowles in "Hazel" in 1961. Played Ben Lake in "87th Precinct" in 1961. Played Mr. Chambers in "The Dick Van Dyke Show" in 1961. Played Mr. Drake in "Hazel" in 1961. Played Henry in "The Dick Van Dyke Show" in 1961. Played Dr. Torrence Hayworth in "The Dick Van Dyke Show" in 1961. Played Mr. Caldingham in "Sail a Crooked Ship" in 1961. Played John Gerber in "The Dick Van Dyke Show" in 1961. Played General Mooney in "Alcoa Premiere" in 1961. Played Sam Marks in "Ripcord" in 1961. Played Dr. Lemler in "The Dick Van Dyke Show" in 1961. Played Malcolm P. Denton in "Hazel" in 1961. Played Ezra in "The Dick Van Dyke Show" in 1961. Played Cook in "The Virginian" in 1962. Played Doctor Stackerly in "Wide Country" in 1962. Played The General Practitioner in "The Alfred Hitchcock Hour" in 1962. Played Mr. Flagstone in "The Alfred Hitchcock Hour" in 1962. Played Dr. Arthur Pinter in "The Bill Dana Show" in 1963. Played John in "The Munsters" in 1964. Played Dr. Andrew Benton in "Voyage to the Bottom of the Sea" in 1964. Played Mr. Carruthers in "Where Love Has Gone" in 1964. Played Charlie in "The Cincinnati Kid" in 1965. Played Barcroft in "Laredo" in 1965. Played Senator in "I Dream of Jeannie" in 1965. Played The Trial Judge in "How to Murder Your Wife" in 1965. Played Simon Blair in "The Big Valley" in 1965. Played Judge in "Get Smart" in 1965. Played Bennington in "Green Acres" in 1965. Played Mayor in "My Blood Runs Cold" in 1965. Played Winston in "Laredo" in 1965. Played Bar Patron in "Mirage" in 1965. Played The Hotel Manager in "Laredo" in 1965. Played Bowman in "Batman" in 1966. Played Man at Table in "Frankie and Johnny" in 1966. Played Millionaire in "Batman" in 1966. Played Mr. Thorton in "Mr. Terrific" in 1966. Played Lucius Fremont in "Mayberry R.F.D." in 1968. Played Harper in "Mayberry R.F.D." in 1968. Played Carl Shumley in "Adam-12" in 1968. Played Roger - State Dept. Representative in "The Million Dollar Duck" in 1971.

PART I

COST ACCOUNTING

Section A

INTRODUCTION

1

NATURE AND SCOPE OF COST ACCOUNTING

INTRODUCTION

In the modern business world, the nature and functioning of business organisations have

become very complicated. They have to serve the needs of variety of parties who are interested

in the functioning of the business. These parties constitute the owners, creditors, employees,

government agencies, tax authorities, prospective investors, and last but not the least the

management of the business. The business has to serve the needs of these different category

of people by way of supplying various information from time to time. In order to satisfy the

needs of all these group of people a sound organisation of accounting system is very essential.

In the ancient days the information required by those who were interested with a business

organisation was met by practising a system of accounting known as financial accounting

system. Financial accounting is mainly concerned with preparation of two important

statements, viz., income statement (or profit & loss account) and positional statement (or

Balance Sheet). This information served the needs of all those who are not directly associated

with management of business. Thus financial accounts are concerned with external reporting

as it provides information to external authorities. But management of every business

organisation is interested to know much more than the usual information supplied to outsiders.

In order to carry out its functions of planning, decision-making and control, it requires

additional cost data. The financial accounts to some extent fails to provide required cost

data to management and hence a new system of accounting which could provide internal

report to management was conceived of.

NEED FOR COST ACCOUNTING

The need for cost accounting arises owing to the following :

To Overcome the Limitations of Financial Accounts

Financial accounting records in an overall manner the results of the operations of a

business, using conventional double entry book-keeping techniques. It suffers from the

following limitations :

(i) It provides only past data : Financial accounts provide out of date information

to management. But management is interested in current data but not past data

as it does not serve any purpose to it. Therefore it has been rightly pointed out

that financial accounts provide only a post-mortem analysis of past activities.

(ii) It reveals only over all result of the business : Financial accounts does not

provide data for each and every product, process, department or operation

separately. Instead it provides the financial information in a summary form for

the entire organisation as a whole.

(iii) It is static in nature : Modern business is dynamic but not static. Financial

accounts does not incorporate the changes that take place within the business.

(iv) It fails to take into account the impact of price level change : In the modern

4 Cost Accounting and Financial Management

inflationary conditions the price level has significant impact over financial

statement. Under financial accounts, assets are shown at the actual or historical

cost. Consequently depreciation is also charged on actual or historical cost. This

under charging of depreciation will distort the profit figure.

(v) Possibility of manipulation of financial accounts : Very often financial accounts

are manipulated at the whims and fancies of management so as to project better

image in the minds of prospective investors. The chief forms of manipulating

the financial accounts assume the form of over or undervaluation of inventory,

excessive or inadequate provision for depreciation, creation of secret reserves,

etc.

(vi) It fails to exercise control over resources : Financial accounts fail to exercise

control over materials, labour and other expenses incurred in a business enterprise.

As a results, avoidable wastages and losses go unchecked under this system of

accounts.

(vii) It fails to provide adequate data for price fixation : Financial accounts fail to

provide adequate cost data on the basis of which selling price is fixed. In the

absence of fixation of prices in advance, it is not possible to supply quotations to

the prospective customers. To that extent the income from such sales diminish.

(viii) It fails to provide adequate data for management in carrying out its functions :

Management of every organisation relies heavily on adequate cost data for

formulating policies and in decision-making process. But financial accounts

fails to provide such useful cost data to management.

(ix) It does not provide a basis for cost comparison : Financial accounts does not

help in cost comparison over a period of time or between two jobs or two

operations. Thus a basis for judging the efficiency of an year with past year or

worthfulness of two different jobs or operations cannot be appraised.

(x) It does not make use of control techniques : Financial accounts fail to make use

of certain important cost control techniques such as budgetary control and standard

costing. Thus financial accounts do not facilitate measuring the efficiency of the

business with the help of control techniques.

(xi) It fails to ascertain break-even point : Financial accounting does not help in

ascertaining the break-even point, i.e., the sale or output where the revenue

equals the cost. Hence, the point of no-profit-no-loss cannot be made out under

financial accounts.

To Ensure Optimum Utilisation of Resources

In todays business world, the resources available are very scarce. Hence every business

unit must strive hard to obtain maximum output with the available input. In order to ensure

the optimum utilisation of scarce resources, the value of input is measured against the value

of output. This implies matching cost per unit of production against the value of output or

selling price. But financial accounts does not provide the information relating to cost per

unit of production. Hence the need for cost accounting was felt necessary.

To Achieve Overall Efficiency of Business

Every businessman will make constant effort to improve his business. In order to

formulate suitable policy and sound decision, he has to know answers to certain questions

such as (a) What is the maximum profit which a business can make? (b) Is the profit earned

5

by it is more or less compared to the earlier years? (c) Which product line is making more

profit? (d) Has too much capital is blocked in raw materials? (e) Whether the cost of

production has gone up compared to earlier years? (f) Should the selling price requires

revision? Cost accounting serves as an useful tool in the hands of management in this

direction. By analysing the cost of production of every unit, it helps management to know

the answers to the above questions.

GROWTH AND DEVELOPMENT OF COST ACCOUNTING

The history of cost accounting can be traced back to the fourteenth century. In the course of

its evolution it passed through following stages.

(1) In the first stage of its development, cost accounting was concerned only with

the three prime cost elements, viz., direct material cost, direct labour cost and

direct expenses. For recording the transactions relating to materials the important

documents used were (a) stores ledger, (b) a material requisition note, and (c)

materials received note. To account for labour cost, employee time card and

labour cost card were devised by Mr. Metcalfe. Later on a distinction between

manufacturing and non-manufacturing cost was made by Mr. Norton. Thus

material cost, labour cost and manufacturing cost constituted prime cost.

(2) Secondly, around the turn of the nineteenth century, the importance of nonmanufacturing

cost (overheads) was recognised as one of the distinct element of

cost. The method of charging non-manufacturing cost to the production cost was

devised under this stage.

(3) Thirdly, the techniques of estimation and standards are devised. Instead of using

actual cost, standard costs are used and by comparing with the actual cost the

differences are noted, analysed and disposed off accordingly. This helps in

knowing the efficiency of the business undertaking.

(4) Fourthly, cost accounting methods were applied to all types of business

undertakings. The costing principles and techniques were also extended to

important functions of a business.

(5) In modern times the development of electronic data processing has occupied

significant stage in the growth of cost accounting system.

Cost Accounting in Indian Context

The application of cost accounting methods in Indian industries was felt from the

beginning of the twentieth century. The following factors have accelerated the system of

cost accounting in our country.

(a) Increased awareness of cost consciousness by Indian industrialists with a view

to ascertain costs more accurately for each product or job.

(b) Growing competition among manufacturers led to fixation of prices at a lower

level so as to attract more customers.

(c) Economic policy of government which laid emphasis on planned economy with

a view to achieve the targets led to cost reduction programmes by Indian

industrialists.

(d) Increased government control over pricing led the Indian manufacturers to give

utmost importance to the installation of cost accounts.

(e) The establishment of National Productivity Council in 1958 and the Statutory

Nature and Scope of Cost Accounting

6 Cost Accounting and Financial Management

Recognition of Institute of Cost and Works Accountants of India in 1959 gave

further encouragement to install cost accounting system in Indian industries.

DEFINITION AND SCOPE OR COST ACCOUNTANCY

The terminology of cost accountancy published by the Institute of Cost and Management

Accountants, London defines cost accountancy as "the application of costing and cost

accounting principles, methods and techniques to the science, art and practice of cost control

and the ascertainment of profitability. It includes the presentation of information derived

therefrom for the managerial decision-making."

On analysis of the above definition, the following features of cost accountancy become

evident :

(a) "Cost accountancy" is used in the broadest sense when compared to "cost

accounting" and "costing". This is so because cost accountancy is concerned

with the formulation of principles, methods and techniques to be applied for

ascertaining cost and profit.

(b) Having ascertained 'cost' and 'profit', cost accountancy is concerned with

presentation of information to management. To enable management to carry out

its functions, reports must be promptly made available at the right time, to the

right person and in a proper from.

(c) The information so provided is to serve the purpose of managerial decisionmaking

such as introducing a new line of product, replacement of manual labour

by machines, make or buy, decisions, etc.

SCOPE OF COST ACCOUNTANCY

The scope of any subject refers to the various areas of study included in that subject. As

regards the scope of cost accountancy is concerned, it has vast scope. The following topics

fall under the purview of cost accountancy : (1) Costing, (2) Cost Accounting, (3) Cost

Control Techniques, (4) Budgeting and (5) Cost Audit.

1. Costing

The terminology of ICMA, London, defines costing as "the technique and process of

ascertaining the cost."

The above definition is very significant in as much as it carries the main theme of cost

accountancy. This definition emphasises two important aspects, viz.

(a) The technique and process of costing : The technique of costing involves two

distinct steps, namely, (i) collection and classification of costs according to

various elements and (ii) allocation and apportionment of the expenses which

cannot be directly charged to production. As a process, costing is concerned

with the routine ascertainment of cost with a formal procedure.

(b) Ascertainment of cost : It involves three steps, viz., (i) collection and analysis of

expenses, (ii) measurement of production at different stages and (iii) linking up

of production with the expenses. To achieve the first step, costing has developed

different systems such as Historical, Estimated and Standard Cost. For achieving

the second step, costing has developed different methods such as single or

output costing. Job costing, contract costing, etc. Finally, for achieving the last

step costing has developed important techniques such as Absorption Costing,

Marginal Costing and Standard Costing.

7

The three terms indicated as 'systems', 'methods', 'techniques' are independent factors

but co-exist together. Ascertainment of cost of production is based on all these three terms.

For example, continuous type of industries may use process costing as a method, using

actual cost as a system, under Standard Costing Technique.

2. Cost Accounting

Kohler in his dictionary for Accountants defines cost accounting as "that branch of

accounting dealing with the classification, recording, allocation, summarisation and reporting

of current and prospective costs."

Mr. Wheldon defines cost accounting as "the classifying, recording and appropriate

allocation of expenditure for the determination of the costs of products or services, the

relation of these costs to sales values, and the ascertainment of profitability."

The above definitions reveal the following aspects of cost accounting :

(a) Cost classification : This refers to grouping of like items of cost into a common

group.

(b) Cost recording : This refers to posting of cost transactions into the various

ledger maintained under cost accounting system.

(c) Cost allocation : This refers to allotment of costs to various products or

departments.

(d) Cost determination or cost finding : This refers to the determination of the cost

of goods or services by informal procedure, i.e., procedures that do not carry on

the regular process of cost accounting on a continuous basis.

(e) Cost reporting : This refers to furnishing of cost data on a regular basis so as to

meet the requirements of management.

Differences between Cost Accountancy, Costing and Cost Accounting

Points of Cost Accountancy Costing Cost Accounting

Differences

(1) Scope Cost accountancy is broadest It is broader in It is narrow in its scope.

in its scope. its scope.

(2) Function It is concerned with formulation It is concerned with It is concerned with

of costing principles, methods, ascertainment of cost. recording of cost.

techniques to be adopted by

a business.

(3) Periodicity of It is a starting Point. It begins where cost It begins where costing

functioning accountancy ends. ends.

(4) Persons The persons involved are The person involved is The persons involved

involved experts in the field of cost accountant. are cost clerks.

cost accountancy such as

management accountant.

3. Cost Control

According to Kohler, cost control represents the employment of management devices

in the performance of any necessary operation so that pre-established objectives of quality,

quantity and time may be attained at the lowest possible outlay for goods and services. The

terminology published by ICMA, London, defines cost control as "The guidance and

Nature and Scope of Cost Accounting

8 Cost Accounting and Financial Management

regulation by executive action of the cost of operating an undertaking." Acccording to this

definition, cost control aims at guiding the actuals towards the lines of target and regulates

the actuals if they deviate from the targets. This guidance and regulation is done by the

executive who is responsible for causing the deviation. This process will become clear by

enumerating the steps involved in any cost control technique.

(a) Fixation of targets in terms of cost and production performance.

(b) Ascertaining the actual cost and production performance.

(c) Comparison of actuals with the targets.

(d) Analysing the variance by causes and the person responsible for it.

(e) Taking remedial steps to set right unfavourable variations.

Cost control is exercised through a variety of techniques such as inventory control,

quality control, budgetary control, standard costing, etc. The advantages of cost control are

as follows :

(a) It helps in utilising the resources to the full extent.

(b) It helps in reduction of prices which are benefited by customers.

(c) It helps in competing successfully in the market.

(d) It increases the profit earning capacity of the business.

(e) It increases the goodwill of the business.

4. Budgeting

Mr. Heiser in his book Budgeting-Principles and Practice, defines budget as "an overall

blue print of a comprehensive plan of operations and actions expressed in financial terms.

According to him hudgeting process involves the preparation of a budget and its fullest use

not only as a devise for planning and co-ordinating but also for control."

5. Cost Audit

The terminology of ICMA, London, defines cost audit, as "the verification of the

correctness of cost accounts and of the adherence to the cost accounting plan.

NATURE OF COST ACCOUNTING

The nature of cost accounting can be brought out under the following headings :

1. Cost accounting is a branch of knowledge : Though considered as a branch of

financial accounts, cost accounting is one of the important branch of knowledge, i.e., a

discipline by itself. It is an organised body of knowledge consisting of its own principles,

concepts and conventions. These principles and rules of course vary from industry to industry.

2. Cost accounting is a science : Cost accounting is a science as it is a body of systematic

knowledge relating to not only cost accounting but relating to a wide variety of subjects

such as law, office practice and procedure, data processing, production and material control,

etc. It is necessary for a cost accountant to have intimate knowledge of all these field of

study in order to carry on his day-to-day activities. But it is to be admitted that it is not a

perfect science as in the case of natural science.

3. Cost accounting is an art : Cost accounting is an art in the sense it requires the

ability and skill on the part of cost accountant in applying the principles, methods and

techniques of cost accountancy to various management problems. These problems include

the ascertainment of cost, control of costs, ascertainment of profitability, etc.

9

4. Cost accounting is a profession : In recent years cost accounting has become one of

the important professions which has become more challenging. This view is evident from

two facts. First, the setting up of various professional bodies such as National Association

of Accountants (NAA) in USA. The Institute of Cost and Management Accountants in UK,

the Institute of Cost and Works Accountants in India and such other professional bodies

both in developed and developing countries have increased the growing awareness of costing

profession among the people. Secondly, a large number of students have enrolled in these

institutes to obtain costing degrees and memberships for earning their livelihood.

RELATIONSHIP BETWEEN FINANCIAL ACCOUNTING

AND COST ACCOUNTING

Cost accounting is very closely-related to financial accounting. Some authorities on the

subject consider cost accounting to be the branch of financial accounting. But it may be

said that cost accounts is complementary to financial accounts, i.e., a subject which is

necessary to make financial accounts whole or complete. Financial accounts and cost accounts

are both similar in certain respects. But in some other respects they differ from one another.

These points of similarities and dissimilarities and enumerated below :

Points of Similarities

(a) The fundamental principles of double entry is applicable in both the systems of

accounts.

(b) The invoices and vouchers constitute the common basis for recording transactions

under both the systems of accounts.

(c) The results of business are revealed by both the systems of accounts.

(d) The causes for losses and wastages of a business are provided by both these

systems of accounts.

(e) The determination of future business policy is guided by both these systems of

accounts.

(f) A basis for comparison of expenses is being provided by both the accounting

systems.

(g) Accuracy of accounts is maintained under both the systems by means of exercising

check over errors and commissions which might creep in either of accounts.

Points of Dissimilarities

Points of Financial Accounts Cost Accounts

differences

1. Purpose The purpose of financial accounts is The purpose of cost accounting is internal

external reporting mainly to owners, reporting, i.e., to the management of every

creditors, tax authorities, government, business.

and prospective investors.

2. Obligation This is to be maintained compulsorily Cost accounts are maintained voluntarily.

to maintain by higher forms of business organisations. In some cases government has directed

accounts The preparation of accounts must be in some companies to maintain cost accounts

accordance with the statutory provisions. to improve efficiency.

(Contd.)

Nature and Scope of Cost Accounting

10 Cost Accounting and Financial Management

Points of Financial Accounts Cost Accounts

differences

3. Recording (a) Financial accounts records transactions (a) Cost accounts records transactions in

in a subjective manner, i.e., according an objective manner, i.e., according to

to the nature of expenditure. purpose for which costs are incurred.

(b) In financial accounts expenses are (b) In cost accounts costs are expressed

recorded in totals. by proper analysis and classification

in order to find out out cost per unit.

(c) Financial accounts records all (c) Cost accounts records only those costs

transactions which takes place in the which affect production and sales.

business.

(d) Financial accounts records only (d) Cost accounts records both historical

historical costs. and estimated costs.

4. Analysis of Financial accounts disclose profit for Cost accounts show the profitability or

profit the entire business as a whole. otherwise of each product, process or

operation so as to reveal the areas of

profitability.

5. Control (a) It does not make use of any control (a) It makes use of some important control

techniques. techniques such a Marginal Costing,

Budgetary Control, Standard Costing,

etc. in order to control cost.

(b) It does not control materials by using (b) It exercises control over materials using

any technique. some techniques such as ABC analysis,

level setting, economic order quantity,

etc.

(c) Control over labour is not exercised. (c) Control over labour is exercised and

efforts are taken to minimise idle time,

over time etc.

6. Duration of Generally, financial accounts provides Cost accounting furnishes cost data at

reporting financial information once a year. frequent intervals. Some reports are daily.

Some are weekly and some monthly.

7. Evaluation The information provided by financial The cost data helps in evaluating the

of efficiency accounts is not sufficient to evaluate the efficiency of the businesses.

efficiency of the business.

8. Pricing It fails to guide the formulation of It provides adequate data for formulating

pricing policy. pricing policy.

9. Valuation Stock is valued at cost or market price Stock is always valued of cost price.

of stock whichever is less.

DIFFERENCES BETWEEN COST AND MANAGEMENT ACCOUNTING

The American Accounting Association 1958, committee on management accounting

defines management accounting as "the application of appropriate techniques and concepts

in processing the historical and projected economic data of an entity to assist management

in establishing a plan for reasonable economic objectives and in the making of rational

decisions with a view towards achieving these objectives." It includes the methods and

concepts necessary for effective planning for choosing among alternative business actions,

and for control through the evaluation and interpretation of performance. Its study involves

consideration of ways in which accounting information may be accumulated, synthesised,

analysed and presented in relation to specific problems, decisions and day-to-day tasks of

business management.

11

The terminology published by ICMA, London, defines management accounting as

"the application of professional knowledge and skill in the preparation and presentation of

accounting information in such a way as to assist management in the formulation of policies

and in the planning and control of the operation of the undertaking."

If we examine the above two definitions of management accounting it appears that

both the systems of accounts serve the same purpose. However, they differ from one another

in respect of the following :

Points of Cost Accounting Management Accounting

differences

1. Growth of The history of cost accounting dates back This system of accounting evolved in the

Accounting to fourteenth century. middle of 20th century. Hence it is of recent

origin where compared to cost accounting.

2. Object The main objects of cost accounts is to The main objective of management

ascertain and control cost. accounting is to provide useful information

to management for decision-making.

3. Basis of It is based on both present and future It is concerned purely with the transactions

recording transactions for cost ascertainment. relating to future.

4. Scope Cost accounts has narrow scope as it It has a wide scope in as much as it covers

covers matters relating to ascertainment the areas of financial accounts, cost

and control of cost. accounts, taxation, etc.

5. Utility Cost accounts serves the needs of both Management accounting serves the needs

internal management and external parties. of only internal management.

6. Types of It deals only with monetary transactions. It deals with both monetary and nontransactions

i.e., it covers only quantitative aspect. monetary transactions, i.e., both quantitative

dealt with and qualitative aspects.

7. Observation Cost accounts follow a definite principle It does not follow a definite principle and

of principles for ascertaining cost and a format format. Instead, the data to be presented

and format for recording. depends up on the need of the management.

RELATIONSHIP BETWEEN COST, ESTIMATE AND PRICE

The terms 'estimates', 'costs' and 'prices' are closely related to each other in costing. An

estimate is a forecast of the probable cost of a product, job, or process for a future date.

Estimation is purely based on past experience. Cost accounts provide reliable data on the

basis of which future cost is estimated. However, an estimate is only an opinion because

there is every chance of commiting mistake while estimating. Estimation is also based on

the future conditions and much depends on guesswork. But such guesswork must be as far

as possible closer to the facts.

Cost represents actual total cost incurred in manufacturing a product or in completing

a job. The total cost of manufacturing a product broadly consists of material, labour and

other expenses. The true cost is ascertained either at the various stages of completing the

production or at the end of completion of the job. The current cost serves as the basis for

future estimates. Thus cost is considered as a fact as it represents the actual or true cost of

manufacturing a product or completing the job.

Price in costing refers to selling price of a product. Selling price is arrived at after

adding a certain margin of profit to the actual cost. Of course, certain other factors also

Nature and Scope of Cost Accounting

12 Cost Accounting and Financial Management

determine the price fixation policy such as demand for the product, tastes and preferences

of customers, price of competitive products, future trends of prices and so on. So price

fixing is regarded as a matter of policy. Hence it has been popularly said that an "estimate

is an opinion, cost is a fact and price is a policy."

PURPOSES OR OBJECTS OF COST ACCOUNTS

Costing serves number of purposes among which the following are considered to be most

important.

1. Ascertainment of cost : This was considered to be the primary objective of cost

accounting in the initial stages of its development. However, in modern times this has assumed

the secondary objective of cost accounting. Cost ascertainment involves the collection and

classification of expenses at the first instance. Those items of expenses which are capable

of charging directly to the products manufactured are allocated. Then the other expenses

which are not capable of direct allocation are apportioned on some suitable basis. Thus the

cost of production of goods manufactured is ascertained. In this process, cost accounts

involves maintenance of different books to record various elements of cost. Cost of production

is ascertained by using any of the costing technique such as historical costing, marginal

costing, etc.

2. Cost control : At one time cost control was considered as secondary objective of

cost accounts. But in modern times it constitutes the primary purpose because of its utmost

importance in all business undertakings. Cost control is exercised at different stages in a

factory, viz., acquisition of materials, recruiting and deployment of labour force, during the

production process and so on. As such we have material cost control, labour cost control,

production control, quality control and so on. However, control over cost is exercised through

the techniques of budgetary control and standard costing. The control techniques enable the

management in knowing the operating efficiency of a business.

3. Determination of selling price : Every business organisation aims at maximising

profit. Total cost of production constitutes the basis on which selling price is fixed by

adding a margin of profit. Cost accounting furnishes both the total cost of production as

well as cost incurred at each and every stage of production. No doubt other factors are taken

into consideration before fixing price such as market conditions the area of distribution,

volume of sales, etc. But cost plays the dominating role in price fixation.

4. Frequent preparation of accounts and other reports : The management of every

business constantly rely upon the reports on cost data in order to know the level of efficiency

relating to purchase, production, sales and operating results. Financial accounts provide

information only at the end of the year because closing stock value is available only at the

end of the year. But cost accounts provide the value of closing stock at frequent intervals by

adopting a "continuous stock verification" system. Using the value of closing stock it is

possible to prepare final accounts and know the operating results of the business.

5. To provide a basis for operating policy : Cost data to a great extent helps in

formulating the policies of a business and in decision-making. As every alternative decisions

involve investment of capital outlay, costs play an important role in decision-making.

Therefore availability of cost data is a must for all levels of management. Some of

the decisions which are based on cost are (a) make or buy decision, (b) manufacturing

by mechanisation or automation, (c) whether to close or continue operations in spite of

losses.

13

FUNCTIONS OF COST ACCOUNTANT

The functions of cost accountant may be enumerated under the following :

Traditional Functions

The traditional functions comprise of the routine functions of cost accountant. Such

functions are as follows :

(a) To establish various cost centres in the organisation.

(b) To ascertain the cost of every product, job or process both in terms of total and

per unit of product.

(c) To design suitable system for defining responsibilities and controlling cost.

(d) To provide necessary data to enable management in fixing the price.

(e) To prepare reports on wastages of material, loss of labour time, idle capacity of

machines so as to improve profitability of business.

(f) To implement cost control techniques such as budgetary control and standard

costing.

(g) To prepare cost schedules to assist management in making decisions and in

formulating policies.

(h) To design suitable forms for organising an effective system of reporting which

ensures provision of adequate cost data to all levels of management.

(i) To assist management in the valuation of closing stock of raw materials and

work-in-progress so that too much of capital is not locked up in unnecessary

inventories.

(j) To prepare periodical cost statements and profit and loss account.

Modern Functions

In recent times the functions of a cost accountant are not only confined to ascertain and

control cost but extend far beyond these functions. This is on account of the additional

responsibilities arising from the various branches of accounting, works organisation, office

management and administration, methods of statistical analysis, systems analysis, O and M

studies, modern principles of management, use of computers, etc. These modern functions

are as follows :

(i) Supervising the functions of mechanised accounting.

(ii) Organisation of internal audit in the field of accounting.

(iii) To work in close co-ordination with various departmental managers so as to

implement cost reduction programmes and methods of improvement.

(iv) To undertake cost audit programmes as per the directives issued by the

government and the provisions of the Indian Companies Act of 1956.

As regards the role of cost accountant in an industry, in has been beautifully summarised

by Mr. Wilmot in his article on "the cost accountant's place in management". According to

him, the role of cost accountant is "that of a historian, news agent, and prophet". As historian

he must be meticulously accurate, i.e., while supplying cost information to management he

has to furnish in greater detail with carefulness and exactness. As news agent, he must be

up-do-date, selective and provide full cost information to the needy person. As a prophet he

must combine knowledge and experience with foresight and courage.

Nature and Scope of Cost Accounting

14 Cost Accounting and Financial Management

INSTALLATION OF COST ACCOUNTS

At the outset it is to be understood that a common cost accounting system cannot be

installed for all types of business undertakings. The cost accounting system depends upon

the nature of business and the product manufactured. Before a suitable system of cost

accounting is installed it is necessary to undertake a preliminary investigation so as to know

the feasibility of installing cost accounting system to such business. While introducing a

system of cost accounts it should be borne in mind that cost accounting system must suit the

business. There should not be any attempt to make the business suit the system. One more

consideration that is of practical importance is that the benefits derived from cost accounting

system must be more than the investment made on it. This means the system must be simple

and it must lead to savings through the control of materials, labour and overheads when

compared to expenses incurred in maintaining it. For the successful functioning of the

costing system, the following conditions are essential :

(a) There must be an efficient system of material control.

(b) A sound and well designed method of wage payment must be set up.

(c) The existence of sound basis for collection of all indirect expenses and a basis

for its apportionment to various production departments.

(d) The integration of cost and financial accounts to facilitate reconciliation of

profit as shown by these two systems of accounts.

(e) The use of printed forms so as to facilitate quick compilation of cost reports.

(f) The duties and responsibilities of cost accountant must be made clear.

Factors to be Considered before Installing a Cost Accounting System

The following factors are to be considered before installing a cost accounting system :

1. History of business unit : The history of a business unit implies the duration of its

existence, position in the industry, the rate of growth, policy and philosophy of management

and the like. The history of business unit serves as the basis for designing the cost accounts

in respect of necessity, simplicity, and investment involved in installing cost accounts.

2. Nature of the industry : The nature of business such as manufacturing, mining,

trading, etc. determines the costing techniques to be applied. Similarly, the type of product

manufactured also determine the method of costing that is to be employed. In other words,

there is no all purpose technique and method of costing that can be applied universally.

3. Product range : The range of products manufactured and sold also determine the

method of costing to be selected. Accordingly range of products must be analysed in terms

of size, models, fashions, area of market, competitors and whether the products are made to

customers specification or for stocking and selling.

4. Technical considerations : Technical considerations that influence the installation

of cost accounts are as follows :

(a) Size and layout of the factory

(b) The existence of production and service departments

(c) Flow of production

(d) Capacity of machines and degree of mechanisation

(e) Existence of laboratories

(f) Internal transport and material handling equipments

(g) Production control techniques

(h) Inspection and testing of materials and finished goods.

15

5. Organisational factors : The problem of installing cost accounting is somewhat

difficult in case of an existing business when compared to new business. However, the

existing set up of the organisation should be least disturbed should the need arise. In order

to fix up responsibility to the executives it may be necessary to group the departments. The

organisational factors to be considered are : (a) size and the type of organisation such as

line, line and staff, functional and committee organisation, (b) the levels of management,

viz., top level, middle level and bottom level management, (c) extent of delegation and

responsibility, (d) extent of centralisation and decentralisation, (e) extent of departmentation,

(f) availability of modern office equipments, and (g) number of managerial and supervisory

staff.

6. Selling and distribution method : The chief factors to be considered with regard to

distribution process are the warehousing facilities, external transport, market research and

other promotional measures, terms of sale and procurement of orders from customers.

7. Accounting aspects : The factors to be considered in respect of accounting are : (a)

number of financial records, (b) existing forms, (c) registers used, and (d) number of copies

required.

8. Area of control to be exercised : The areas where cost control is to be exercised is

to be identified so that each manager may take action relevant to his activities. If material

control occupies significant area of control, it must be given topmost priority for exercising

control over materials.

9. Reporting : The cost accounting system to be installed must ensure frequency and

promptitude in reporting cost data to all levels of management. It must also to be pointed

out that duplication of reporting is to be avoided. Further, only those information which are

relevant for the management in a particular context alone should be reported.

10. Uniformity : The practice of adopting uniform costing facilitates inter-firm

comparison among various firms belonging to the same industry. Further it also has the

benefit of adopting common costing practice if a holding company has number of

subsidiaries.

11. Use of electronic data processing : In modern days it has become a common

practice to use electronic data processing equipments and computers. In this situation it is

essential to ensure that the equipment meets the needs of the system but not the other way

round.

12. Practical considerations : The cost accounting system to be installed must be

flexible in operation and must be capable of adaptation to changing conditions. The system

must be periodically scrutinised so as to make necessary changes owing to development in

business.

Practical Difficulties in Installing Cost Accounting

In addition to the above problems, a cost accountant will encounter the following

practical difficulties at the time of installation of cost accounting system :

1. Lack of support from management : Wherever costing system is installed. It is

essential to seek the support of various departmental managers. Very often the managers

show hostile attitude towards the costing system. They feel that this system will interfere in

their routine work and probably as a means of checking their efficiency. Under such

circumstances it is better to convince them about the utility of costing system for the business

as a whole.

Nature and Scope of Cost Accounting

16 Cost Accounting and Financial Management

2. Resistance by existing accounting staff : Very often the existing accounting staff

resist the installation of the cost accounting system on two grounds. Firstly, they feel that

the new system of accounting might lead to excess work. Secondly, they are afraid of their

job security. But this difficulty may be overcome by encouraging them about the usefulness

of cost accounting as a supplement to financial accounts and the generation of more

employment opportunities from the installation of cost accounting system.

3. Non-cooperation from middle and bottom level management : At times the middle

and bottom level managers such as foremen, supervisors and inspectors also fail to extend

their wholehearted cooperation fearing additional work which may be entrusted to them.

This problem may be overcome by suggesting them about the simplicity of the system and

the existence of a separate cost accounting department to look after costing matters. However,

they may be required to provide necessary reports concerning their area of activity so as to

enable functioning of cost accounting department efficiently.

4. Lack of trained staff : This was no doubt a problem in olden days. Today this

problem is overcome, thanks to the establishment of The Institute of Cost and Works

Accountant of India in our country which offers professional course in costing and also

offers training facilities through various companies to the candidates undergoing the course.

In spite of this facility, it is somewhat difficult to get the competent and experienced staff at

the time of installation. This problem can be overcome by paying attractive salaries to the

cost accountants.

5. Heavy expenses in installing and maintaining the system : The setting up of a

separate costing department with staff often poses a problem. In addition to installation, the

operating expenses in the form of printing and stationery, heating and lighting, depreciation

and insurance, rent and rates are to be incurred. However, as was mentioned earlier, the

system of cost accounting must be a useful investment, i.e., benefits derived from it must be

more than the investment made on it. If this is not possible, for the time being the system

must be discarded.

REQUISITES OR ESSENTIALS OF COST ACCOUNTING SYSTEM

The following are the essentials of an ideal cost accounting system :

1. Accuracy : The system of cost accounting must provide for accuracy in terms of

both cost ascertainment and presentation. Otherwise it will prove to be misleading.

2. Simplicity : Cost accounting system involves detailed analysis of cost. To avoid

complications in the procedure of cost ascertainment an elaborate system of costing should

be avoided and every care must be taken to keep it as simple as possible.

3. Elasticity : The cost accounting system should be capable of adopting itself to the

changing situations of business. It must be capable of expansion or contraction depending

upon the needs of the business.

4. Economy : The costs of operating costing system must be less. It must result in

increased benefit when compared to the expenditure incurred in installing it.

5. Comparability : The records to be maintained must facilitate comparison over a

period of time. The past records must serve as a basis to guide the future.

6. Promptness : An ideal costing system is one which provides cost data in an analytical

form to the management. So all the departments of a factory must analyse and record the

relevant items of cost promptly in order to furnish cost information on a regular basis to

various levels of management. This helps in checking up the progress of the business on a

regular basis.

17

7. Periodical preparation of accounts : With a view to facilitate the comparison of

results frequently, it is desirable to prepare accounts periodically. Constant comparison of

actual result with standard result enables to spot out areas of inefficiency. This can be set

right by taking remedial measures.

8. Reconciliation with financial accounts : The system of cost accounts must be

capable of reconciling with financial accounts so as to check accuracy of both the system of

accounts.

9. Uniformity : The various forms and documents used under costing system must be

uniform in size and quality of paper. Printed forms must be used to avoid delay in the

preparation of reports. This also reduces the burden of clerical staff. Forms of different

colours can be used to distinguish different documents.

10. Equity : The basis of apportioning indirect expenses to products, departments or

jobs must be fair and equitable.

ORGANISATION OF COST ACCOUNTING DEPARTMENT

The organisation of cost accounting department depends upon the size of the concern.

Whatever may be the structure of cost accounting department in a factory, it is established

to serve the following purposes : (i) To compile cost data in order to meet the statutory

requirement wherever applicable, (ii) To provide necessary cost data to management to

carry out its functions efficiently, and (iii) To ensure efficiency and economy in the

functioning of cost accounting department. To achieve the above purposes cost accounting

department usually performs the following functions :

(1) Designing and installation of appropriate method of costing.

(2) Accumulation of cost data by process, department and product.

(3) Analysis of such cost by elements of cost.

(4) Estimation of cost of production.

(5) Reporting of cost information to all levels of management.

(6) Advising management in relation to investment based on cost information.

In a small and medium-sized concern, the cost accounting department may be set up as

a section of financial accounting system. The cost accountant who is incharge of cost

accounting department may be authorised to report to the chief accountant. In large-sized

concern, a separate cost accounting department is established under the supervision of a

full-fledged cost accountant. The cost accounting department is equipped with sufficient

staff each to look after different facets of cost accounting function. While important functions

such as budgeting, cost analysis, etc. are performed by cost accountant, cost recording, cost

reporting and such other functions are performed by cost clerks.

The cost accounting department may be organised either on the principle of centralisation

or decentralisation. Under centralised system, the functions of cost accounting departments

relating to all firms belonging to same industry is performed at a common central place.

The extent of centralisation of cost accounting department depends upon the following

factors :

(a) The philosophy of management regarding divisional responsibility.

(b) The ready availability of cost data from each firm.

(c) Size of the firm.

(d) The area of operations of every firm.

(e) The economy involved in centralisation process.

Nature and Scope of Cost Accounting

18 Cost Accounting and Financial Management

Advantages of Centralised Cost Accounting Department

1. It facilitates full utilisation of services of costing staff.

2. It permits mechanisation of accounting which is not possible under decentralisation

system.

3. It reduces paper work and economise stationery costs.

4. It facilitates prompt reporting.

Under decentralisation system a separate cost accounting department is set up for each

and every firm under the supervision of a competent cost accountant. This system has certain

advantages.

(a) It tends to increase the initiative of the cost accountants of every firm as the

responsibility to control lies in their hands.

(b) It eliminates duplication of recording and reporting.

(c) It increases the speed of functioning of cost accounting department.

Relationship of Cost Department to Other Departments

1. Cost accounting department and production department : It can well be said that

production department and cost department are interwoven together as the former cannot

function efficiently without the existence of the latter. The production process is concerned

with the utilisation of materials, money and human resources. The cost department helps in

estimating the material cost, labour cost and other expenses for manufacturing a product. It

also helps in controlling these costs so as to minimise the cost or production. In fact, the

main objective of cost accounting system is to reduce the cost of production of goods or

services manufactured and rendered by business units. The other areas where cost accounting

department is helpful in manufacturing process are : (a) Engineering department which is

concerned with designing a product, (b) Research and development department which is

concerned with development of a new product, (c) Production planning and control

department which ensures completion of production within the time schedule, and (d) Quality

control section, which ensures quality of products. All these departments heavily rely on

cost accounting department because costs to be incurred in these departments have a direct

impact over the functioning of these departments.

2. Cost accounting department and personnel department : The personnel

department which is concerned with proper recruitment, selection, training, time-keeping,

fixation of wage rate and preparation of payroll, will work with close co-ordination of cost

department. Each and every function performed by personnel department is again influenced

by additional cost to be incurred on such function as for example promotion of employees

leads to incurrence of additional wages.

3. Cost accounting department and finance department : The finance department is

concerned with receiving and disbursement of cash. The allocation of investments on fixed

and working capital entirely depends upon the cost reports submitted to it by the cost

department. Judicious utilisation of available capital is possible only when priority is given

for more important areas of investment. This is facilitated by furnishing prompt report by

cost department.

4. Cost accounting department and purchase department : In majority of firms

purchase of raw materials at right quantity, of right quality, from right supplier, at a right

time not only ensures ready supply but also at a reasonably low price. Any purchase of

19

substandard quality of materials will lead to dissatisfaction among customers and

consequently it leads to loss of orders. Further, purchase of materials at high rate will increase

the cost of production tremendously. Delay in getting supplies of materials lead to delay in

executing customers orders. In these respects cost accounting department can assist purchase

department to ensure efficient purchasing. Cost department also help in reducing (a) waste

of materials, (b) the risk from theft, and (c) excessive investment in inventories.

5. Cost accounting department and marketing department : Marketing department

relies on cost information in order to (a) estimate future product cost for fixing the selling

price, (b) in knowing the expenses incurred in marketing the products so that if the amount

exceeds the target, control measures can be taken to reduce such expenses, (c) to consider

alternative selling methods and promotional measures, and (d) to make further investment

in warehousing and distribution process. Cost department provides all such information as

is required by the marketing department for its efficient functioning.

6. Cost accounting department and financial accounting department : The existence

of cost accounting department makes the financial accounting department a complete

organisation by furnishing additional cost data to the chief accountant. Cost department

enable financial accounts department in carrying out the latter's function furnishing necessary

data in respect of the following :

(a) Supply of material cost, labour cost and expenses to facilitate preparation of

manufacturing account.

(b) Provision of the value of closing stock frequently to facilitate the preparation of

interim final accounts.

(c) Assist financial accounting department in matters relating to taxation, insurance

and in solving legal matters.

(d) Enables financial accounting department to settle the bills by duly approving

them.

(e) Helps financial accounting department in budgeting.

ADVANTAGES OF COST ACCOUNTING

A good costing system serves the needs of a large sections of people. The advantages of

cost accounting are discussed below.

Advantages of Cost Accounting to Management

1. Fixation of responsibility : Whenever a cost centre is established, it implies

establishing a kind of relationship between superior and subordinates. Thus responsibilities

are fixed on every individual who is concerned with incurrence of cost.

2. Measures economic performance : By applying cost control techniques such as

budgetary control and standard costing it helps in assisting the performance of business.

3. Fixation of price : By providing cost data it helps management to fix the selling

price in advance. Hence, quotations can be supplied to prospective customers to secure

orders.

4. Aids in decision-making : It helps management in making suitable decisions such

as make or buy, replace manual labour by machines, shut down or continue operations

based on cost reports.

5. Helps in the preparation of interim final accounts : By the process of continuous

stock taking it enables to know the value of closing stock of materials at any time. This

facilitates preparation of final accounts wherever desired.

Nature and Scope of Cost Accounting

20 Cost Accounting and Financial Management

6. Helps in minimising wastages and losses : Cost accounting system enables to locate

the losses relating to materials, idle time and under utilisation of plant and machinery.

7. Facilitates comparison : It facilitates cost comparison in respect of jobs, process,

departments and also between two periods. This reveals the efficiency or otherwise of each

job process or department.

8. Assists in increasing profitability : Costing reports provide information about

profitable or unprofitable areas of operation. The management can discontinue that product

line or that department which are responsible for incurring losses. Thereby only profitable

line of activities alone are retained.

9. Reconciliation with financial accounts : A well maintained cost accounting system

facilitates reconciliation with financial accounts to check the arithmetical accuracy of both

the systems.

10. It guides future production policy : Cost data help management in determining

future production policy. Any expansion or contraction of production for the future is based

on past cost data.

Advantages to Employees

1. Cost accounting system enables employees to earn better wages through overtime

wages and incentive systems of wage payment.

2. By providing better facilities it ensures job security to employees.

3. Employees benefit by merit rating techniques which is conducted by scientific process.

Advantages to Creditors

1. It increases the confidence of creditors in the capital employed in the business.

2. The frequent preparation of reports and statements help in knowing solvency position

of the business.

Advantages to the Government

1. It helps government in formulating policies regarding export, import, taxation, price

control measures, wage fixation, etc.

2. It helps in assessing excise duty, sales tax and income tax of the business.

3. Costing information helps in preparing national plans.

Advantages to Society

1. Cost reduction and cost control programmes go to minimise cost of production of

goods and services. A portion of the reduced cost of production is shared by customers by

paying less price for goods and services.

2. It offers employment opportunities in the cost accounting department in the capacity

of cost accountants and cost clerks.

LIMITATIONS OF COST ACCOUNTING

1. It is expensive : The system of cost accounting involves additional expenditure to

be incurred in installing and maintaining it. However, before installing it, care must be

taken to ensure that the benefits derived is more than the investment made on this system of

accounting.

2. The system is more complex : As the cost accounting system involve number of

steps in ascertaining cost such as collection and classification of expenses, allocation and

21

apportionment of expenses, it is considered to be complicated system of accounts. Moreover

the system makes use of several documents and forms in preparing the reports. This will

tend to delay in the preparation of accounts.

3. Inapplicability of same costing method and technique : All business enterprises

cannot make use of a single method and technique of costing. It all depends upon the nature

of business and type of product manufactured by it. If a wrong technique and method is

used, it misleads the results of business.

4. Not suitable for small scale units : A cost accounting system is applicable only to

a large-sized business but not to a small-sized one. Hence, there is limitation to its application

to all types of business.

5. Lack of accuracy : The accuracy of cost accounts get distorted owing to the use of

notional cost such as standard cost, estimated cost, etc.

6. It lacks social accounting : Cost accounting fails to take into account the social

obligation of the business. In other words, social accounting is outside the purview of cost

accounts.

CRITICISMS OR OBJECTIONS LEVELLED AGAINST COST ACCOUNTS

Despite several benefits offered by cost accounts, critics have levelled the following

criticisms against it :

1. Cost accounting is merely a system of estimates and probabilities : Though the

main purpose of cost accounting is to ascertain the cost of production with a reasonable

degree of accuracy, yet absolute accuracy is not possible owing to the two reasons.

(a) Indirect expenditures are absorbed on the basis of predetermined rates instead of actual

rates, and (b) The material cost and labour cost is inflated so as to cover the normal loss and

wastage of materials and normal idle time of workers.

2. Cost accounting is unnecessary in such business enterprises which make large

profit : It is argued that industries which earn large amount of profit need not have a system

of cost accounting. This statement is absolutely wrong. Earning of more profit by industry

does not necessarily mean that its cost of production is lowest and there is no scope for

further reduction in the cost. Profit represents the difference between the selling price and

the cost of a product. Profit earned by a business may be high because of increased price

prevailing in the market. Two or more than two products manufactured by business may

earn profit for one line of product and loss by other. The profit earned by one product may

outweigh the loss suffered by other product thus resulting in overall profit. So it is wrong to

judge the efficiency of the business on the basis of overall profitability of the business. If

necessary steps are taken to reduce or eliminate losses suffered by a second line product,

the industry would earn more amount of profit. It is in this context that a system of costing

is felt.

3. It is unnecessary : This criticism is levelled owing to lack of understanding of the

objectives and advantages of costing. In the present-day competitive world, every

manufacturer must know the cost of production for each article so that he can fix selling

price on a reliable and reasonable basis. Further he can also compare his selling price thus

fixed with the price prevailing in the market. Cost ascertainment involves application of

certain principles and techniques. Having ascertained the cost, control techniques are used

to keep the costs under check and thereby increase the profit. Thus it can be said that cost

accounting is necessary in most of the concerns.

Nature and Scope of Cost Accounting

22 Cost Accounting and Financial Management

4. It is expensive : This criticism is true as long as the benefits derived from this

system is not commensurate with the investment made on it. But by carefully designing the

system so as to suit the business, the criticism can be nullified.

5. Competition governs price and hence there is no need for costing system : Some

critics contend that in these days of competition prices are determined by the forces of

demand and supply as against fixation of selling price by adding a desired margin of profit

on the cost price. This argument is incorrect. Even in this situation cost accounts disclose

the margin of profit that is earned by comparing the market price and cost of production. It

impresses upon management the need to reduce cost by increasing the volume of production

or by elimination of losses and wastages if any. If the cost price tend to be higher than the

market price, it is desirable to abandon such product line and pay attention to profitable line

of products.

6. There is no need for costing where production efficiency is high : The statement

is misleading as without a yardstick to measure the efficiency it is not possible to appraise

the efficiency of a business. Cost accounting system offers number of techniques such as

standard costing, budgetary control, inter-firm comparison and so on. The cost of production

can also be compared between two periods of time to know whether business is currently

running efficiently when compared to previous year. In case of inefficient operation remedial

measures can be taken to improve the business.

7. Other objections : Some other objections that are raised against the installation of

cost accounting system are follows :

(a) It is a mere matter of forms and rulings : Often it is argued that the cost accounting

system degenerates into a matter of mere forms and rulings. This is not the defect of cost

accounting system but the way in which the system is maintained. No doubt different forms

are necessary under costing system but they must be simplified and altered to meet the

changing condition.

(b) Failure in many cases : The system of cost accounting is often condemned as

defective inasmuch as it has failed to produce the desired result. The defect does not lie in

the costing system but for some other reasons such as indifferent attitude of the management,

lack of adequate facilities, non-cooperations or opposition from employees. These defects

can be overcome by reversing the above trend.

(c) For want of necessity : It is contended by some that costing is of recent origin and

that its application was not felf in the past. Though it was not used earlier, still many industries

prospered. So it is felt by some critics that the installation of costing involves unnecessary

expenditure. However it is to be remembered that todays business functions in a competitive

conditions and every manufacturer must know the actual cost of production in order to

reduce the selling price. Many industrial failures in the past may be attributed to the lack of

knowledge on the part of management relating to the actual cost of production thereby

selling product below cost.

QUESTIONS

I. A. Indicate whether the following statements are True or False

1. Cost accounting is not needed for a non-profit organisation such as a club. T/F

2. If management is not interested in costing information, there should be no costing department. T/F

3. The cost accounting system is designed in such a way the flow of costs parallel the physical movement

of products. T/F

23

4. Effective control of cost can be secured only if the responsibility for cost incurrence is

clearly defined. T/F

5. Installation of a suitable system of cost accounting is restricted to manufacturing concerns only. T/F

6. Cost Audit is a part of cost accounting. T/F

7. Both financial accounts and cost accounts are written up with the same basic documents. T/F

8. Since pricing is a matter of management policy cost information is useless for price fixation. T/F

9. A concern that has been quite prosperous needs no costing system. T/F

10. Cost accounting is a branch of financial accounts. T/F

[Answers : True-2, 3, 4, 6, 7

False-1, 5, 8, 9, 10]

B. Choose the correct answer from the following

1. Which one of the following is most important tool in cost planning

(a) cost unit (b) direct cost

(c) cost statement (d) budgeting

2. Cost accounting concepts include all the following except

(a) planning (b) profit sharing

(c) controlling (d) product costing

3. The principal factor to be considered in designing a cost system include

(a) company organisation structure (b) nature of business

(c) manufacturing process (d) all of the above

4. The chief objective of cost accounting is to

(a) earn more profit (b) increase production

(c) provide information for management for planning and control (d) fix the prices

5. Cost accounting is

(a) nothing more than a detailed analysis of expenditure

(b) an instrument of management control

(c) useful only in such organisation as have profit as the aim

(d) not needed if prices are beyond the control of the firm

6. The need for cost accounting arises as it helps in

(a) ascertaining and control of cost (b) increasing the sales

(c) increasing the production (d) solving labour problem

7. The primary objective of cost accounting in modern time is

(a) cost ascertainment (b) cost control

(c) ascertainment of profit (d) preparation of reports

8. The purpose of financial accounting is to provide information for

(a) fixing prices

(b) recording expenses

(c) locating factors leading to wastage and losses

(d) assessing the profitability and financial position of the firm

9. Which one of the following is not a factor to be considered in designing a cost system

(a) price factor (b) organisational factor

(c) economy factor (d) reporting factor

10. Cost accounting differs from financial accounting in respect of

(a) recording cost (b) ascertaining cost

(c) control of cost (d) reporting of cost

[Answers : 1(d), 2(b), 3(d), 4(c), 5(b), 6(a), 7(b), 8(d), 9(a), 10(c)]

C. Match the following :

List A List B

1. Financial accounting provides (a) management needs

2. One of the objections against costing (b) ascertainment of profit of business

3. Cost accounting was evolved (c) is expensive

4. Financial accounting is concerned with (d) find the actual cost of product

5. Cost accounting is concerned with (e) factual financial information

[Answers : 1-e, 2-c, 3-d, 4-b, 5-a]

Nature and Scope of Cost Accounting

24 Cost Accounting and Financial Management

SECTION-A - SIMPLE QUESTIONS

1. Define Cost Accounting. (Bangalore University, B. Com., April 2000)

2. Distinguish between costing and cost accounting. (Bangalore University, M. Com., 1998)

3. Mention any two uses of cost accounting system to management.

(Bangalore University, B. Com., November 1999)

4. Mention two limitations of costing. (Bangalore University, B. Com., November 1997)

5. Distinguish between cost, estimate and price. (Sri Krishnadevaraya University, B. Com., March 1997)

6. State any four items which are not included in cost accounts.(Bangalore University, B. Com., April 1995)

7. Mention steps that you should take to instal cost accounting.

(Bharathidasan University, B. Com., November 1995)

8. Mention two objects of cost accounting. (M G. University, B. Com., April 1994)

9. What are the limitations of financial accounting? (Osmania University, B. Com., October 1996)

SECTION-B

SHORT ANSWER QUESTIONS

1. "Cost accounting is becoming more and more relevant in the emerging economic scenario in India."

comment. (C.S. Intermediate, June 2000)

2. "Cost accounting system that simply records costs for the purpose of fixing sale price has accomplished

only a small part of its mission"-Explain. (C.S. Intermediate, June 1999)

3. "Selling price is always based on total cost"-comment. (C.S. Intermediate, June 1999)

4. "Cost accounts are key to aconomy in manufacture and one indispensable to the intelligent and economical

management of a factory"-Discuss. (C.S. Intermediate, June 1998)

5. State the steps involved in the installation of a costing system in a large manufacturing company.

(C.S. Intermediate, June 1997) (S. V. University, B. Com., Sept. 94)

6. Cost accounting is a system of foresight and not a postmortem examination, it turns losses into profits,

speeds up activities and eliminates wastes. comment. (C.S. Inter. December 1997)

7. State in differences between financial accounts and cost accounts.

(Bharathidasan University, B. Com., April 1998)

8. What are the main characteristics of an ideal cost accounting system?

(M.G. University, B. Com., September 1994)

9. What is costing? What are its objectives? (Calcutta University, B. Com., October 1997)

10. Describe the pre-requisites for the installation of cost accounting system.

(Karnataka University, M. Com., April 1997)

11. Write a note on cost control. (Mangalore University, B. Com., April 1997)

12. What is cost accounting? What are its objectives? In what respects does cost accounting differ from

financial accounting? (Mangalore University, B. Com., October 1996)

13. Distinguish between cost ertimation and cost ascertainment. (University of Kerala, B. Com., April 1996)

14. State the advantages of cost accounting. (Bangalore University, B. Com., November 1992)

SECTION-C

LONG ANSWER QUESTIONS

1. State the objectives of cost accounting briefly explain the advantages of cost accounting.

(University of Mysore, B. Com., April 1998)

2. Define "Costing", "Cost" and "Cost Accountancy". Distinguish between cost accounting and financial

accounting. (University of Mysore, B. Com., April 2000)

3. "A Good system of costing must place the same emphasise on cost control as on cost ascertainment".

Comment on this statement. (University of Mysore, B. Com., October 1999)

4. "Cost accounting is better understood as a cost control and cost reduction exercise and not a more cost

ascertainment process". Discuss. (University of Mysore, B. Com., April 1997)

5. "Cost accounting is a system of foresight like pre-natal care, but financial accounting is just a postmortem

examination". Critically examine this statement. (University of Mysore, B. Com., October 1996)

25

6. What one the limitations of financial accounting? How do you overcome item in cost accounting?

(University of Mysore, B. Com., November 1995)

7. Define costing. How does it differ from financial accounting? Explain its importance under present

circumstances. (University of Mysore, B. Com., November 1998)

8. State the advantages of costing. How it aids the management and what objections are raised against cost

accounts? (University of Mysore, B. Com., November 91)

9. Define costing. Discuss briefly the objectives and advantages of costing.

(S. V. University, B. Com., April 1998)

10. Define cost accounting and bring out the differences between cost accounts and Financial accounts.

(Madurai Kamaraj University, B. Com., April 1998)

11. Define costing critically evaluate the arguments for the installation of costing system in an industry.

(Mangalore University, B. Com., April 1998)

12. What one the objectives of cost accounting? What are its advantages and limitations?

(Nagarjuna University, B. Com., March 1998)

13. Cost accounting has become an essential tool of management. Mention the steps to be taken while

installing cost accounting system in a manufacturing concern.

(Sri Krishnadevaraya University, M. Com., April 1998)

14. What are the objectives of cost accounting and what is the relation with Management accounting

department? (S. V. University, B. Com., September 1995)

15. "Cost accounting has become an essential tool of modern management". comment.

(Mangalore University, B. Com., April 1994)

16. Explain briefly the objects advantages and limitations of costing.

(Sri Krishnadevaraya University, B. Com., April 1994)

17. Define cost accounting. How does a good system of cost accounting serve the management.

(Bharathidasan University, B. Com., April 1994)

18. Discuss the limitations of financial accounting and explain the importance of cost accounting.

(M.G. University, B. Com., April 1996)

19. "An efficient system of costing is essential factor for industrial control under modern conditions of

business and as such may be regarded as an important part in the efforts of any management to secure

business stability"-Elaborate. (Mangalore University, B. Com., September 1997)

20. What is meant by cost accounting? Discuss in detail the advantages of the cost accounting.

(Madurai Kamaraj University, B. Com., April 1997)

21. What do you mean by installation of costing system? Explain the practical difficulties involved in

installing such a system in a manufacturing concern. (Osmania University, B. Com., October 1996)

22. Explain the advantages of cost accounting. What are the differences between cost accounting and

Financial accounting (Sri Krishnadevaraya University, B. Com., October 1996)

23. "A good costing system is an involvable aid to management." Discuss.

(Osmania University, B. Com., March 1996)

24. How cost accounting is superior over financial accounting? Explain the techniques of costing and their

application and suitability. (Karnataka University, M. Com., May 1996)

25. What is cost accounting? What are its objectives? Discuss.

(Mangalore University, B. Com., October 1995)

26. "Cost accounting has become an essential tool of management". Comment and state the steps to be

taken while installing a costing system in a manufacturing concern.

(Bangalore University, M. Com., May 1995)

27. Explain the advantages of cost accounting. (University of Kerala, M. Com., May 1995)

28. Explain the significance of cost accounting in a manufacturing company.

(Sri Krishnadevaraya University, M. Com., April 1995)

Nature and Scope of Cost Accounting