An Analysis of the Costing Practices of Small and Medium Enterprises (SMEs) in India

In the times when the whole world is being converted into a global world and organizations are trying new innovative things to survive. One area of innovation is costing systems. Last few years have seen a shift from traditional cost accounting to cost management. However, the Small and Medium Enterprises (SMEs) which are supposed to be under tremendous pressure seem to be little cost conscious as they do not bother about generating the precise costing information which can be of great help in the competitive scenario. An attempt was made to evaluate the costing practices prevailing in the SME sector in India. in addition to this, the perceptions of the managers of these SMEs have also been studied relating to the usefulness of cost information. The whole analysis show that though costing information is considered useful, yet the SMEs in India do not give that much weight to the calculation of systematic, accurate and precise costing information. What to talk about the innovations in costing systems, most of the organizations do not have the costing systems as such in their organizations