@ Trainee
dont share your half untrue knowledge. Govt feels cost Audit has gained more importance. this is the reason govt wants to increase scope of Cost Audit. A strong powered commitee has formed . other countries also want to implement cost audit.
Report:
The order opens by acknowledging an imperative – that “in the context of an economic environment, determined by increasing competition both domestically and internationally, efficiency and economy be brought about in the operations of the manufacturing sector to catalyse and facilitate the cost competitiveness of the manufacturing sector in India.” It is equally necessary to enable the industry to address issues arising from unfair trade practices such as dumping, subsidies and cartels in international trade.
Recognising the advantages of costing – be they about improving efficiency in the use of materials, labour and plant, maximising production and realising greater profits – it says that cost analysis furnishes useful information in respect of such important matters as gross margin, differential costs, and replacement costs. “Cost analysis can be useful to the Regulators of public utilities and provide a basis for comparing claims and assessing the validity of issues arising out of international trade.”
CAclubindia
