Development of Cost Accounting

The development of cost accounting could be seen during the first world war i.e., 1914-1919 which was rapid due to the control on the prices imposed by the government. The government entered into the cost plus contract system. Cost plus contract system provides for the payment by the customers or the contacteebof the actual cost of manufacture product or of rendering service plus a stipulated profit. This necessitated maintenance of cost records, ascertainment of cost and cost control for a job or service rendered.