Influence of Cost Accounting Techniques on Performance Improvemen

Influence of cost Accounting Techniques on performance Improvement: An Empirical Study on manufacturing organizations in Bangladesh.

Development in cost accounting:

Although financial accounting had its beginning early in the modern civilization along with trade& Industry, cost accounting has rather late in coming. The first accounting beginning may be traced to Robert Loders firm accounts for 1610-1620. Efforts were made by many industrialists in Great Britain and in the United States to install factory cost systems early as in 1805.Such efforts were however, sporadic ( Banerjee, 2006).According to Banerjee, Cost Accounting is a quantitative method that accumulates, classifies, summarizes and interprets financial and non-financial information for three major purposes, viz. “ascertainment of cost of a product or service; operational planning and control and decision making.”Cost Accounting is a recent development born in the response to the needs of managers for detailed information about the cost of a product or a unit of service. Now Production efficiency was considered to be the tool of profit maximization. Losses& inefficiencies in the course of manufacture were sought to be eliminated or minimized by proper control measures at different points. Now as a main part of management accounting is continuously changing. To produce the quality products with low price, managers of the manufacturing organizations are using different types of cost accounting techniques. Now the accounting profession, analyzing the cost behavior attempts to improve the traditional costing system that is to answer the new challenges. Now cost Accounting use different techniques such as: Activity based costing, differential costing, kaizen costing, throughput costing etc.

Findings:

Most of the manufacturing organizations do not have idea about kaizen costing, throughput costing, hybrid costing and attribute cost techniques. Highly used techniques are process costing, traditional...