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Cost Accounting Introduction ·        Cost accounting measures, records, analyzes and reports costs of products/services to help management plan, control and make decisions. ·        In hospitals it identifies costs of patient care activities (inpatient days, surgeries, lab tests), support services, and overheads. Purpose (hospital): Determine cost per bed-day , per surgery, per lab test. Control costs (identify waste, improve efficiency). Set prices/fee schedules and negotiate with insurers/GOI schemes. Budgeting, performance measurement and investment decisions. Example: Calculating cost per inpatient day to set bed charges or to compare with peer hospitals. Exam tip: Start with definition → objectives (control, pricing, decision-making) → hospital examples. Procedure of Cost Accounting (step-by-step) Define objective (e.g., compute unit cost of inpatient day). ...

Accounting Control Systems Introduction An Accounting Control System refers to the set of procedures, methods, and mechanisms that organizations establish to ensure financial data integrity, safeguard assets, and achieve operational efficiency. It provides a framework for accurate recording, reporting, and monitoring of financial activities. The system ensures compliance with policies, statutory requirements, and standards . It minimizes risks of fraud, misstatements, and errors by maintaining checks and balances across different accounting functions. Objectives Safeguard company assets. Ensure accuracy and reliability of financial reports. Promote operational efficiency. Ensure adherence to management policies and legal regulations. Internal Control Internal Control is the backbone of an accounting control system. It refers to the processes designed to provide reasonable assurance regarding the achieve...