What is the first cost in accounting?
First Cost means the "cost of goods sold" (determined in accordance with applicable accounting rules as applied on a consistent basis by Licensee) for the applicable Qualifying Licensed Products, less returns, cash discounts and payment discounts, and excluding amounts paid by Licensee for sales, use and similar taxes, .
What is the origin and evolution of cost accounting?
The age of the industrial revolution resulted in the first swept of large businesses and organizations.
So these organizations were more complex and dynamic.
This is what lead to the invention of what is now the modern cost accounting process in use..
Where did accounting originate?
Accounting's history can be traced back thousands of years to the cradle of civilisation in Mesopotamia and is said to have developed alongside writing, counting and money.
The early Egyptians and Babylonians created auditing systems, while the Romans collated detailed financial information..
Why did cost accounting emerge?
History of Cost Accounting
During the Industrial Revolution, much larger and more complex businesses emerged, notably to produce industrial goods such as steel for railroads.
These businesses had fixed costs that could not easily be associated with the products they produced — what we now call overhead..
- Established by Congress in 1970, the Cost Accounting Standards Board (CASB) was dissolved in 1980 but was permanently re-established in 1988.
The Cost Accounting Standards (CAS) are a set of 19 standards and rules promulgated by the U.S. government to be used in establishing costs on negotiated procurements.
