Resource Consumption Accounting

Management Accountant-an accountant of the future for Governance-Both Corporate world and the Government.

Unravelling Cost-Quantum Relation .


Cost Accounting-Ultimate Tool For Business.

•The underlying subtle fact is that everything converges to cost.
•“Consumption-Cost “is a linear equation
•Resources are the base for activity-Which in-turn involves cost.
•Cost is related to some parameter and that is consumption=per unit/per process.


Cost is not stand alone.
•In that it is not incurred without an objective/purpose.If so it can be charity but they do have a purpose though not for profit.
•Cost is for the means or the resources,to an end which may be profit making /discharging social responsibility/Charity for Gods sake to cleanse from sins.

Cost is for consumption as profit is out of such consumption.

•Profit is earned out of resources spent @ a cost.
•Tracking consumption will reduce cost.
•Channelising resources is cost control.
•Consumption monitoring and cost tracking are simultaneous and not in sequence they may overlap each gearing the other.

Cost Accountant has greater role to play.

•If cost is any indicative of performance to a company then resource consumption is indication of cost involvement .Cost accountant cannot be a meek spectator of cost books alone he should be a production planner and ineffect a cost engineer.

Cost Accountant-is a Cost Engineer.