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CS Executive – Steps For Installation of a Costing System

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Steps For Installation of a Costing System for cs executive

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The following topic is explained in respect of an Installation of Costing System. These notes are short, crisp and easy to understand for all.

Installation of a Costing System – CS Executive

  1. The nature, method, stages, and quantities in production should be examined.
  2. The size, layout, and organization of the factory should be studied.
  3. The purchase, storage, and issue mechanism of inventory should be examined & modified.
  4. Mechanism of payroll & wage payment should be properly decided.
  5. The requirements of management and policy towards cost control should be kept in view.
  6. The Cost-Benefit Analysis of the Costing System should be done & it should be economical.
  7. The system should be simple & easy to operate.
  8. Forms and records of original entries should involve least clerical work and inefficiencies.
  9. Costing System should be such that it points out inefficiencies and wastages of each and every process.
  10. Reporting should become an integral part of working.

 

The detailed explanation of the installation of the costing accounting with examples is available for CS preparation in CS Online Coaching Classes

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