ASSESSMENT OF COST ACCOUNTING PRACTICE (A CASE STUDY ON FIKIR WATER COMPANY)

Abstract

This research paper titled “Assessment of cost accounting practice” which was conducted on Fikir water factory. The main objective of the study was evaluating the cost accounting practice of Fikir water factory. In light of this objective, the study adopted descriptive research design with quantitative and qualitative research approach. To achieve this objective, primary data sources were used. Primary data were obtained using Questionnaire. The response shows that the factory uses cost accounting method like process costing, double entry system, cost allocation base proper keeping and record data... There are certain issues that become a problem for the cost accounting practice in the Fikir water factory. In this regard, the result of the study indicated that the major problem of the factory price setting for its products because the production cost of products is not properly and clearly determined, lack of adequate knowledge with respect to cost discounting system. The study suggests a series of measures which could be taken by the Fikir water factory to address various problems identified in the study.