Accounting for Managers by Srinivas R. Rao - HTML preview

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CHAPTER-V

Cost Accounting - Elements of Cost - Types of Costs - Preparation

of Cost Sheet – Standard Costing – Variance Analysis – Material Variances

– Labour Variances – Simple Problems Related to Material And Labour

Variances Only.

2

CHAPTER – I: Basics of Accounting

Lesson – 1.1 Accounting – An Introduction

1.1.1 Introduction

Accounting is aptly called the language of business. This designation

is applied to accounting because it is the method of communicating

business information. The basic function of any language is to serve as

a means of communication. Accounting duly serves this function. The

task of learning accounting is essentially the same as the task of learning

a new language. But the acceleration of change in business organization

has contributed to increase the complexities in this language. Like other

languages, it is undergoing continuous change in an attempt to discover

better means of communications. To enable the accounting language to

convey the same meaning to all stakeholders, it should be made standard.

To make it a standard language certain accounting principles, concepts

and standards have been developed over a period of time. This lesson

dwells upon the different dimensions of accounting, accounting concepts,

accounting principles and the accounting standards.

1.1.2

Know the Evolution of Accounting

Understand the Definition of Accounting

Comprehend the Scope and Function of Accounting

Ascertain the Users of Accounting Information

Know the Specialized Accounting Fields

Understand the Accounting Concepts and Conventions

Realize the Need for Accounting Standards

1.1.3 CONTENTS:

1.

Evolution of accounting

2.