Question

Ecclesiasticus 42:6b-7 says “where there are many hands, lock things up. Whatever stores you issue, do it by number and weight, spendings and takings, put everything in writing.” [New Jerusalem Bible] How does this passage apply to cost accounting?

Answer 1

Indeed Ecclesiasticus 42: 6b-7 applies to cost accounting because it indicates that regardless of the type of company you have, it is important to keep a record of each and every one of the activities such as purchases, sales, expenses, among others; because, when being handled by several people, there can be conflicts; therefore, it is better to keep all the records clearly.

Cost accounting has the main objective of having cost information for internal use of management for making decisions, operational adjustments and reporting.