An Study Evaluating Cost Accounting Records and Cost Audit in Engineering Companies

Engineering industries plays a vital role in the Indian economy. It has connections with various other sectors of the economy. The revenue generated due to these sectors also contributes to the enhancement of the national economy. In today's economy, these industries are facing the challenge of cost competitiveness. Thus with this perspective it is thoughtful to study the various tools of cost control and cost reduction. And to achieve it, cost audit is important which should be applied to all the manufacturing industries. So with an intention to increase the earning capacity of the industries & cost competitiveness it was felt necessary to study the various provisions applicable to these industries. The study covered the Engineering industries in Pune region, Pimpri-Chinchwad MIDC and also other SMEs from other parts of Pune. The period under the study was of 5 years. The effectiveness of the cost accounting records, its rules&regulations and cost audit in relation to cost competitiveness of the engineering companies was studied. Problems faced in cost audit were also investigated and solutions were suggested to overcome those.