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Conditions for an effective costing system.
- There must be a proper system for stores and stock control
- There must be co-operation and co-ordination among the staff members of the organisation.
- The cost accounts and financial accounts should be maintained in such a way that their results
can be reconciled easily.
- The wages procedure must be proper and satisfactory.
- Overheads must be recorded accurately and must be charged to the respective production
departments.
- The costing department must be established and responsibilities and duties of the cost account
clearly defined.
marto answered the question on February 15, 2019 at 07:24