Cost Accounting for Class XI

These flashcards cover fundamental concepts of cost accounting, definitions of important terms, and relevant principles outlined in the introductory materials.

Cost Accounting

A method of accounting that focuses on capturing a company's costs of production by assessing the variable and fixed costs associated with producing a good or service.

Cost

The amount of expenditure (actual or notional) incurred on, or attributed to, a given thing.

Costing

The process of ascertaining costs through classifying, recording, and allocating expenditure to determine the costs of products or services.

Cost Accountancy

The application of costing and cost accounting in a business to determine selling price and profitability as well as forecasting expenses.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Cost Control

The process of identifying and preventing waste in a business's existing operations.

Cost Reduction

The process aimed at achieving a real and permanent reduction in the unit cost of goods produced or services rendered without compromising on quality.

Direct Costs

Costs that can be directly attributed to the production of specific goods or services.

Overheads

Indirect costs that are not directly linked to the production of goods or services.

Financial Accounting vs Cost Accounting

Financial accounting records a company's financial history; cost accounting focuses on the costs of producing goods or services.

Fundamental Duties

Responsibilities imposed by the Constitution of India on every citizen to promote justice, liberty, equality, and fraternity.

Preamble of the Constitution of India

The introductory statement that outlines the guiding principles and philosophy of the Constitution.

Cost Ascertainment

The process of determining the actual costs incurred in the production of goods or services.

Profit Analysis

The assessment of profitability for a particular product, job, batch, or process.

Forecasting

The process of estimating future financial outcomes based on historical data.

Budgeting Techniques

Methods used to prepare budget estimates that help in forecasting costs.

Management Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.