Cost audit report rule vs cost accounting record rule

Stat Audit 2326 views 4 replies

Rajesh Raman

292 Points Joined June 2011

Can anybody say the difference between cost audit report rule and cost accounting record rule, and the companies which are covered under provision regarding the cost accounting record rule and cost audit report rule?

Replies (4)

sivaram

Asst Mgr-Taxation

6918 Points Joined April 2009

Mr Rajesh Raman

Mainteance of cost records is now mandatory for almost all mfg companies and even service industries are also covered w.e.f 1.4.2011 but cost audit is not mandatory for all companies as of now 12 industries which were earlier notified for cost audit prevails .central govt will bring under its purview more industries based on the Information furnished for companies for which cost audit is so far not mandatory notification will be issued in this regard by CG

RAMESH CHANDRA SHARMA

munka istentisztelet

899 Points Joined April 2011

cost accounting record rules, as the name suggests, are recquired to be complied with in respect to maintenance of cost records for various

industries/products. ...... It contains the particulars relating to utilisation

of material or labour or other item of cost as may be prescribed to

include such details in the books of accounts. The broad categories

under which the detailed cost records are required are materials, labour,

utilities, overheads, depreciation, royalty/technical know-how, research

& development expenses, incentives on exports, interest and other

borrowing costs, captive consumption, pollution control, inter-company

transaction etc. It also contains various proformae to enable the industry

to calculate the cost of production and cost of sales effectively.

cost audit report rules. as far as i know, cost audit report rules are the rules which the cost auditor follows while preparing the cost audit report of a company.........this is all i can say about audit report rules

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