It was during the early years of World War II, that the concept of cost as an
independent entity made its beginning in the industrial circles of the world.
Due to the prohibitive cost of defense operations, the then governments at war
found it difficult to ascertain the price of defence purchases and thus evolved
the concept of cost + contracts. This forced the contractors to submit the cost
of the work to be undertaken by them, in order to be awarded the contract.
1945 brought the end of the war, and the nations ravaged by the effects of war
began large-scale reconstruction of their economies through industrialisation.
The end of colonialism meant that many nations gained their independence, and
this process increased rapidly. The late forties and fifties can really be
termed the golden era of industrialisation. The importance of cost accounting as
being central to the formation of government policies provided the foundation of
the rapid growth of the profession. What began as a mere exercise in estimating
the cost later developed into a movement for efficiency and optimum utilisation
of scarce resources.
The Institute of Cost Accountants of India (erstwhile The Institute of Cost and
Works Accountants of India) was first established in 1944 as a registered
company under the Companies Act with the objects of promoting, regulating and
developing the profession of Cost Accountancy.
On 28th May, 1959, the Institute was established by a special act of Parliament,
namely, the Cost and Works Accountants Act, 1959 as a statutory professional
body for the regulation of the profession of cost and management accountancy.
It has since been continuously contributing to the growth of the industrial and
economic climate of the country.
The Institute of Cost Accountants of India is the only recognised statutory
professional organisation and licensing body in India specialising exclusively
in Cost and Management Accountancy.
A Cost Accountant is a person who offers to perform or perform services involving
the costing or pricing of goods and services or the preparation, verification or
certification of cost accounting and related statements.
The head office is situated at 12, Sudder Street, Kolkata 700 016 and operates
through four regional councils are Kolkata, Chennai, Delhi and Mumbai as well as
through a number of important chapters situated elsewhere in India and abroad.
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To develop the Cost and Management Accountancy function as a powerful tool
of management control in all spheres of economic activities.
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To promote and develop the adoption of scientific methods in cost and
management accountancy.
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To develop the professional body of members and equip them fully to
discharge their functions and fulfill the objectives of the Institute in the
context of the developing economy.
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To keep abreast of the latest developments in the cost and management
accounting principles and practices, to incorporate such changes are
essential for sustained vitality of the industry and other economic
activities.
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To exercise supervision for the entrants to the profession and to ensure
strict adherence to the best ethical standards by the profession.
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To organise seminars and conferences on subjects of professional interest in
different parts of the country for cross-fertilisation of ideas for
professional growth.
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To carry out research and publication activities covering various economic
spheres and the publishing of books and booklets for spreading information
of professional interest to members in industrial, education and commercial
units in India and abroad.
