Cost Accounting

13

Integrated Accounting System

LEARNING OBJECTIVES

After studying this chapter you should be able to:

1. Understand and explain the meaning, advantages and disadvantages of integrated (integral) accounting system.

2. Know the pre-requisites of successful integration of accounts.

3. Explain the meaning of third entry method.

4. Pass appropriate accounting entries in non-integrated accounting system (financial books and cost books) and integrated accounting system.

5. Distinguish between interlocking and integration of cost and financial accounts.

6. Know how to value stocks in integrated accounts.

7. Explain the meaning of key terms related to integrated accounting system.

In general, manufacturing concerns adopt accounting system to ascertain the cost of ...