| Abstract: | Cost accounting practice is increasingly being recognized as a measure that should be included in manufacturing industries. This study focuses on to the Assessment of cost accounting system, cost management practices and challenges in case of mugger cement factory, realize the objective of the study, To assess the cost accounting system used in determining the cost of product in Mugar Cement Factory: to describe the role of cost accounting practices in case of Mugar cement factory. To identify the challenges of cost accounting practices in Mugar cement factory. In doing this descriptive Research design, mixed research approach were used. Data were collected from 113 employees of Mugar cement factory from production, finance and marketing department. The study relied on primary and secondary data. The primary data collected using interview and questionnaires. The secondary data collected from documents and reports of the company. Data analyzed with descriptive statistics such as frequencies, Percentages, through statistical tool SPSS version 20. The data Presented in tables. The study found out that the company has timely proper keeping documents, sending and receiving documents, recording documents, material specification form and exchanging information with other departments The company identifies the obligation of each responsibility center, has proper recording, keeping and accumulation of cost, creates good cooperation among departments and the responsibility centers provide information for budget control, The company identifies the obligation of each responsibility center, has proper recording, keeping and accumulation of cost, creates good cooperation among departments and the responsibility centers provide information for budget control, The Company does not use modern techniques of costing system like ABC system rather it uses traditional techniques of costing system. Recommends that the Company should classify costs as fixed, variable and semi variable since it helps to measure costs in relation to the change in levels of activities and it should use cost principle to value fixed asset. It also recommends The Company also tries to use modern system of costing since it allocates each cost for each activity, use more data provide more informed estimates of product costs |
