) STATUTORY OBLIGATION

Their is no any Statutory Obligation indeed to maintain

such A/c for maintain CostA/c.
In case of Finacial A/c its Statutory Obligation,several
Acts has governs like INDIAN COMPANIES ACT 1956, INSURANCE
COMPANIES ACT, INDIAN INDUSTRIAL ACT etc.

(B) ADMINISTRATIVE PURPOSE

For Administrative concern its may irrelevant to them.for
maintaining the Cost A/c.
But in Case of Financial A/c its fetch the real fair of
the business during the year.

(C) MANAGEMENT PURPOSE

Maintaing of systematic Cost A/c its a seems to be a
vigilance Management (in short effective Management).
Though they maintain the Finacial A/c its a bounded
duties of the Managemet.

(D) COVEREGE
Cost A/c may cover its some specific areas,like
Manufacturing,Production,Purchasing etc.
The Financial A/c may cover as a Whole of the Organisation
right from Raw material purchased to Sold of Goods.

(E) APPOINTMENT OF AUDITURE

For Cost A/c appointment of Auditore is optional
one.those who aware of A/c they may can handle such A/c.
In case of Financial A/c Auditore must be Appointed as
per the insists of several ACTs like INCOME TAX ACT
1961,INDIAN COMPANIES ACT 1956 etc,(AUDITURE means he/she
must be CA i.e showed qualified Chartered Accountant.

(F) INSURANCE AUTHORITIES

Insurance Authorities they may go through the Cost
A/c ,because they may know that its internal A/c which
disclosed the real facts of the business.
Though they may go through the Financial A/c randomly.

(G)PURPOSE
Cost A/c is maintains for to reveal the real facts of
business normally its may go through by the internal
Managerial persons.
As we discuss in earlier its Statutory Obligatory
one,apart from that the outsider eagerly wanted to view the
status of the firm During the specific period of time.like
Investor,Tax Authorities,Bankers (for Credit Grant(OD)over
draft),Financer,Debenture Holders etc..

(H)TREATMENT
Cost A/c can disclose the real facts of the firm without
hiding any point, because its maintain by internally ie.
(Management)in short its seems Net Result.
Financial A/c treat in such a way that real facts of firm
may not be reveal for eg:(i)Every Year Depreciation is to
be deducted as treating as loss But as per management
concern its falls on the Business it self. eg(ii)Specific
Reserves may not shown in the Balance Sheet of Final A/c
of Finacial A/c. but in Cost A/c all such Reserved are
Displayed.Hence it Shows the Gross Result.

(I)DECISION MAKING
For Decison Making purpose Cost A/c is a Vital A/c to take
the Managerial Decision.
Though Financial A/c its some how need to take Decision but
not upto the Cost A/c.

(J)APPRAISAL
Cost A/c can fetch the NON MONETARY aspects like
performance of a indivial, Work Experience etc because its
focus on specific areas.
In case of Financial A/c its fully focused on MONETARY
aspects only financial transaction are carried out.

(K)METHODOLOGY
Their is no any Specific Methodology is to be followed,it
may depend upon the internal persons based on their
convinince they may follow the rules like Single Entry Rule
or Double Entry Rule etc.
As far as Financial A/c concern,its advice to follow the
Double Entry System it may follows some sort of rules like
Banks they may have the seperate format to build the A/c.

(L)ACCOUNTING YEAR
For Cost A/c their is no any hard or fast rules to follow
the Accounting year to Opening & Closing of A/c
Accounting year means 12month report sarts from 1st date of
April to 31st of April will be treated as Accounting year.
its may continued years together.
In case of Financial A/c it will be closed(Accounting Year)

THANKING YOU
feel free to ask any Clarification at any point or any
subject it may A/c 0r Commerce 0r Electrical & Electronics
0r in Computer Related Both Hardware & Software concern.
Process Costing is an accounting methodology that traces and accumulates direct costs, and allocates
indirect costs of a manufacturing process. Costs are assigned to products, usually in a large batch, which
might include an entire month's production. Eventually, costs have to be allocated to individual units of
product. It assigns average costs to each unit, and is the opposite extreme of Job costing which attempts to
measure individual costs of production of each unit...."

The above definition is certainly trustworthy. I shall explain.

Alternatively, It can be explained as under:

Process costing is a type of costing system that is used for uniform, or homogeneous, products. Process
costing averages the costs over all units to come to the per unit cost. This is in contrast to other types of
costing systems, such as job-order costing that is used for products that are in differentiated batches. Unlike
job-order costing, process costing is tracked using a work-in-process account for each department, rather
than through subsidiary ledgers.

Process costing is appropriate when products are homogeneous (or identical). Where job-order and other
types of costing seek to find the cost per unit for batches of differentiated products, process costing seeks to
find the average cost of all units over a period of time. Therefore, process costing is only appropriate when
all units are the same. For example, a manufacturing company that produces only one homogeneous
product may elect to use process costing.

Read more: http://www.justanswer.com/questions/2us0x-what-is-process-costing-what-is-job-costing-

what-is#ixzz0em3qYXwG

The differences between job order costing and process costing arise from two
factors. The first is that the flow of units in a process costing system is more or less
continuous, and the second is that these units are indistinguishable from one another.
Under process costing it makes no sense to try to identify materials, labor, and overhead
costs with a particular order from a customer ( as we do with job order costing ), since each
order is just one of many that are filled from a continuous flow of virtually identical units
from the production line. Under process costing, we accumulate costs by department rather
than by order, assign these costs uniformly to all units that pass through the department
during a period.
A further difference between the two costing systems is that the job cost sheet is not used
in process costing, since the focal point of process costing is on departments. Instead of
using job cost sheet a production report is prepared for each department in which work is
done on products. The production report serves several functions. It provides a summary of
number of units moving through a department during a period, and it also provides a
computation of unit costs. In addition it shows what costs were charged to the department
and what disposition was made on these costs. The department production report is a key
document in a process costing system.
These differences are summarized below:
Job Order Costing
1. Many different jobs are worked on
during each period, with each job
having different production
requirements.
2. Costs are accumulated by individual
job.
3. Job cost sheet is the key document
controlling the accumulation of costs
by a job.
4. Unit costs are computed by job on the
job cost sheet.
Process Costing
1. A single product is produced either on
continuous basis or for long periods.
All units of product are identical.
2. Costs are accumulated by
departments.
3. The department production report is
the key document showing the
accumulation and disposition of costs.
4. Unit costs are computed by
department on the department
production report.