How to prepare CA Inter Paper-3: Cost and Management Accounting?
A Big Question ??
Preparing Costing at Inter level is not a big task as usually, students have made up for themselves.
Yes, It is true!!
Although as an academician I agree that this paper contains with plenty of chapters to prepare and demand a detailed thoroughly studied at a conceptual level, but still I am going to unwell the tips & tricks to make this chapter easy and to make it in your command.
First of all, All of you know that this subject is entirely new to those students if they are not coming from after completing their graduation because at school level I damn sure no one prepare for this subject at senior secondary level although it had been offered as an option in Accounting paper in different board at CBSE level, I know it and for other board like ICSE,KSB,ASB , I am not sure and requesting you to check and update me after that I will sure it to my audience in the second edition of this article in future. Let me allow sharing some tips and tricks about this paper.
I suggest you when you start to prepare this subject everybody must know the objectives and importance of this subject in the everyday commercial world as an owner of a business and as a consultant to industries. If you see this responsibility at the initial level, then this subject is going to a paradise to learn otherwise a tiresome burden of a matter which you prepare just for passing nothing else.
This subject is all about to recording, systematic managing and presenting data of COST ascertain by a production unit which we called a cost center in the costing world. Once you maintain such data management, it helps you to control over the cost of a product (physical or no physical –Service)and also helping to take three crucial management decision
- if it is incurring a loss to the organization Cost Center must be allowed to continue its operation or
- It should be temporarily suspended or
- It would be closed permanently
Have you thought ever when you order for a Pizza in McDonald –How their organization set the price of it ,
or when you travel in a metro from New Delhi to Airport why they are charging a certain amount and how they come to know that it is fair to load or when a patient gets admitted in a hospital why the management charging a specific rate at a certain standard of service being offered at that hospital and why it is justified to them and how Google come to know about the price charged in their Google AdSense program .
How are you feeling about the above question what is your answers?
Just think Now you must agree that whatever the answer that must be a management’s cup of tea and it is not only preparing a postmortem of financial data but more of it and away ahead of it.
Let me tell you that costing has all answer that’s why this paper is named as Cost and Management Accounting.
In my next article, we will discuss the best tips and trick so stay tuned and wait for my next pen down material Bye Bye!!