COSTING FOR A SPINNING MILL

INTRODUCTION:
It is better to review the basics concepts, costing  methods and techniques and elements of costing before we work out a costing for a spinning mill.
Cost accounting is a system of determining the costs of products or services. It has primarily developed to meet the needs of management.  It provides detailed cost information to various levels of management for efficient performance of their functions.
Financial accounting provides information about profit , loss, cost etc., of the collective activities of the business as a whole. It does not give the data regarding costs by departments, products, processes and sales territories etc. Financial accounting does not fully analyze the losses due to idle time, idle plant capacity, inefficient labour, sub-standard materials, etc. Cost accounting is not restricted to past. It is concerned with the ascertainment of past, present and expected future costs of products manufactured or services supplied. Cost accounting provides detailed cost information to various levels of management for efficient performance of their functions.