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Accounting Solved

Referencing Styles : Harvard | Pages : 2
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Introduction

This study deals with company named CareTech Holdings Plc. This particular organization operates its business activities on providing specialist social care services for disabled people. It is one of the leading UK providers in health and social care services in and around the world. It mainly announces unaudited preliminary results for the year 30thSeptember 2013 (Abrahamsen, Hauge and Kolbjørnsen 2012).Principles of costing helps in minimizing, recycling as well as segregating waste disposal in the most appropriate way. . Financial decisions are made based upon the past financial performance and shortage of availability of funds in running main operational activities in the near future.

Task 1

1.1 Explain the principles of costing and business control systems

·         Define costing

Cost is defined as the cash equivalent or cash amount for an asset. It mainly includes all costs for getting an asset in place ready for use. According to traceability, cost divided into direct cost and indirect cost.

·         Purpose of costing

1. Costing helps in assisting management in making decisions for buying and accepting special orders.

2. Costing helps in assisting management in case of planning and control for the same

3. Costing mainly assists management fir appreciating of scarce resources especially in complex business operations

4. Costing mainly assists on matters relating cost awareness and cost control management

·         Write the name of 6 costing principles and explains at least 3

1. Stakeholder Engagement

Stakeholder Engagement is one of the processes that mainly involve people. It mainly affects in the decision-making process for influencing the decisions for the same.

2. Data accuracy

Data accuracy ensures closeness for desired results of observations for true values.

3. Transferency

Accountants believe in transferency after application of accounting principles, procedures as well as practices.

Principles of costing and business control system of CareTech Holdings Plc

The main Principles of CareTech Holdings Plc based upon the Polluter Pays principles (Albrecht, Stice and Stice 2011). In this particular principle, it ensures health care providers for facilitating safe disposal of related accumulated wastes in the near future

 

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