CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The services oriented organizations are the foundations of industrialization of any nation. Since the introduction of money, people have been concerned with cost. They think of how to manage money. Costing system was first recognized in manufacturing industries with the aim of finding the cost of production or cost of a product, presently, the system is used very widely in other establishments such as transport companies, schools, governmental organizations, hospitals, banks, etc. these examples includes both profit making and non-profit making organizations. The profit making organizations main aim of adopting costing system may be to determine the cost of their products or services among others. The main aim of adopting the system by non-profit making organizations like government offices is to determine the cost of their operations and e cost of carrying on their activities such as the cost of buying stationery for their office work. Costing system is also applied in house holds. A housewife will list items to be bought from the market and cost them before going to the market.
The analysis will help her to know the amount she will take to the market. Costing system is important and is applied in our day to day activities. It is also known that costing is the act of analyzing, classifying, collecting and accumulating past costs using standard methods, while costing techniques are the ways or dimensions of generating a variety of information from cost data for management decision making, there are different types of costing techniques: these includes: standard costing, marginal costing, absorption costing, uniform costing and cash flow analysis. The management determine their use by calling for such information. Looking at al these, the writer strongly believe that the costing techniques mentioned above can lead on firm through the hers economic situations. Cost accounting was introduced to avoid the shortcoming of the financial accounting. It is only to avoid the possible losses arising from the mis handling of the financial data. Cost accounting also attempts to assist the management by reporting the operating result at regular intervals at dierent levels of a activities. It has also to meisue the responsibility of the actual performance against planned performance.
Terms of Use: This is an academic paper. Students should NOT copy our materials word to word, as we DO NOT encourage Plagiarism. Only use as a guide in developing your original research work. Thanks.
Disclaimer: All undertaking works, records, and reports posted on this website, eprojectguide.com are the property/copyright of their individual proprietors. They are for research reference/direction purposes and the works are publicly supported. Do not present another person’s work as your own to maintain a strategic distance from counterfeiting its results. Use it as a guide and not duplicate the work in exactly the same words (verbatim). eprojectguide.com is a vault of exploration works simply like academia.edu, researchgate.net, scribd.com, docsity.com, course hero, and numerous different stages where clients transfer works. The paid membership on eprojectguide.com is a method by which the site is kept up to help Open Education. In the event that you see your work posted here, and you need it to be eliminated/credited, it would be ideal if you call us on +2348064699975 or send us a mail along with the web address linked to the work, to eprojectguide@gmail.com. We will answer to and honor each solicitation. Kindly note notification it might take up to 24 – 48 hours to handle your solicitation.