ABSTRACT
Cost Accounts provide valuable information, and in many cases essential data in connection with tendering for contracts, provision of estimates, comparison of results over periods, and necessary or contemplated changes of policy. Classes of Cost AccountsThe conduct of some businesses is such that their trading is comprised and consists of a series of definite and terminating operations, e.g. building a house or building a ship. In others you have operations which are continuous, e.g. railways. The Principles of CostingA clear understanding of principles must be the groundwork of all real knowledge and practice of Costing. The principle of, and most practical way of charging General Oncost is by a percentage on the Prime Cost. These percentages are, of course, obtainable from previous periods' Trading and Profit and Loss Accounts. By a double-entry system of recording these costs in Cost Books the cost clerk is able to check the accuracy of his work, and to complete accounts similar to Financial Accounts.
