School of Business Management

SCHOOL OF BUSINESS MANAGEMENT DEPARTMENT OF COMMERCE MODEL QUESTION - ANSWER BANK M.Com FC 01 COST & MANAGEMENT ACCOUNTING Cost & Management Accounting “Cost may be classified in a variety of ways according to their nature and the information needs of management.” Explain and discuss this statement giving examples of classification required for different purposes. Answer: The term ‘cost’ means the amount of expenses [actual or notional] incurred on or attributable to specified thing or activity. As per Institute of cost and work accounts (ICWA) India, Cost is ‘measurement in monetary terms of the amount of resources used for the purpose of production of goods or rendering services. To get the results we make efforts. Efforts constitute cost of getting the results. It can be expressed in terms of money; it means the amount of expenses incurred on or attributable to some ...