Contract costing and AS 7
This query is : Resolved
Mirza Zubair Abass
(Querist)
25 May 2011
As we all know that accounting standards are not applicable in cost accounting and profit from contract costing and as per AS-7 are different, then which profit is distributed among shareholders. And what is the fun of computing the other profit?
RAHUL SARIA (CA, CS)
(Expert)
26 May 2011
Dear Mirza.. Accounting and Costing are two different areas. AS-7 is used for preparation of financial accounts, and obviously the profit as per books would be distributable.
whereas costing is done for control & decision making process.
You need to broaden your thinking and see the larger picture.
whereas costing is done for control & decision making process.
You need to broaden your thinking and see the larger picture.
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