| Abstract: | The competitive pressures of the world made increasingly companies focus on cost accounting that has always been a basic component of any successful business strategy. Cost accounting practice has an effect on the manufacturing firms’ performance. This study focuses on assessment of cost accounting practice in GMM Garment private limited Company (PLC). In doing this descriptive case study research design, mixed research approach was used. The Data were collected from 30 GMM Garment PLC employees. The study relied on primary data. The primary data collected using questionnaires. Data analyzed with descriptive statistics such as frequencies, percentages, through statistical tool SPSS version 23. The data presented in tables. The study found out that the company uses process costing and job order costing as there cost system, use standard costing as cost control method and also use direct material, direct labor and manufacturing overhead as there cost structure. And the other finding is that the managers and users use cost information when they make decision on price, financial accounting and production process. The study recommends that In order to produce the necessary cost information for users, cost section should have adequate number of employees and well structured Accounting manual and policy which is intentionally designed for cost accounting. It also recommends that the Company should try to implement the new costing system ABC because ABC provides accurate product cost, Accurate tracing of overhead costs and it will also improve decision making. Having experienced human power in cost accounting would be better for successful implementation of cost accounting tools in the company because the company is highly affected with lack of skilled manpower in cost accounting area. And also it is better for the company to have separate cost accounting department since, the execution of theory in to practice become easy. The segregation of duties is the core factor of success. |
