Management of Tillu manufacturing co. is thinking of installing a costing system its company. What practical DIFFICULTIES management will expect and…

The Practical difficulties with which a Cost Accountant is usually confronted with while installing a costing system in a manufacturing company are as follows: Lack of top management support: Installation of a costing system does not receive the support of top management. They consider it as interference in their work. They believe that such, a system will involve additional paperwork. They also have a misconception in their minds that the system is meant for keeping a check on their activities. Resistance from cost accounting departmental staff: The staff resist because of fear of loosing their jobs and importance after the implementation of the new system. Non co-operation from user departments: The foremen, supervisor and other staff members may not cooperate in providing requisite data, as this would not only add to their responsibilities but will also increase paper work of the entire team as well. Shortage of trained staff: Since cost accounting system's installation involves specialised work, there may be a shortage of trained staff. To overcome these practical difficulties, necessary steps required are: Sell the idea to top management and convince them of the utility of the system.Resistance and non co-operation can be overcome by behavioural approach. To deal with the staff concerned effectively.Proper training should be given to the staff at each levelRegular meetings should be held with the cost accounting staff, user departments, staff and top management to clarify their doubts/ misgivings.