DESIGN AND IMPLEMENTATION OF A COMPUTERIZED COST ACCOUNTING SYSTEM (A CASE STUDY OF KRISTAL SILENT). A RESEARCH PROJECT MATERIAL ON COMPUTER SCIENCE
This research project tries to review the cost accounting system of KRISTAL SILENT, which of course is a manual processing system by a systematic analysis and recording of vertical transactions in respect of labour, material and expenses, the collation and interpretation of these need to disclose costs of particular products or services and the application of this vertical information for the purpose of efficient running of the business.
The accompanying software, computerized cost accounting system is a package developed with the aim of computerizing all cost activities for the said company. The program is in modules, which describes project activities, and information that is related to it. It provides the user the ability to federate analysis of project execution cost on monthly, quarterly and on yearly basis with its respective business forecast.
1.1 BACKGROUND OF STUDY
The nature and development of an economy establishes the basic requirements for accounting. The emphasis to cost accounting for instance has been directed towards meeting the practical needs of manufacturing industries. The rapid growth and expansion of service industries now demand that accountants direct their attention to solving a new set of problems that are in many industries not related to manufacturing. The accountant is faced with the problem of adapting and combining the present accounting techniques into modern and flexible systems for the service industries.
The task of accounting for manufacturing costs and expenses obviously requires a further expansion of the preceding system. The form that this expansion takes depends on many factors such as the kinds of control, which is desired to exercise over manufacturing activities, the nature of the manufacturing activities themselves, and the relationship, which is to be mentioned between financial and cost records.
From the above, it is clear that even though the presentation of cost accounts, for various types of business may vary, i.e is normal to follow the following procedures:
(a) All expenditure is analysed and classified into direct and costs. The direct costs can be attributed to a particular job process on operation and they are transferred to it.
(b) The indirect costs are placed to the relevant account. If they can be placed to one particular account such as factory overhead becomes allocation of overhead. But if they make to be divided between different overhead accounts is called apportionment of overhead.