1. Introduction

Question 1

What is cost audit

Answer 1

Independent examination of the cost and other information of an entity whether profit oriented or not irrespective of its size and form with a view to express opinion there on

Question 2

Objectives of cost audit

Answer 2

1. Price fixation
2. Fixing government subsidies
3. Performance evaluation
4. Optimum utilisation of resources
5. Eliminate wastages and increase productivity , efficiency and profitabilty

Question 3

Features of cost audit

Answer 3

1. Ensure proper cost records-u/s 148 are maintained
2. books and records- companies act 2013
3. internal system-cost records
4. statement , annexures, schedules- true and fair view
5. detailed unit/product/service wise- cost statment
6. reflecting total cost and unit cost- maintained