Office of Chief Adviser Cost
Office of the Chief Adviser
Cost (CAC) is responsible for advising the Ministries and Government
Undertakings on cost accounts matters and to undertake cost investigation work
on their behalf. Office of Chief
Adviser Cost is one of the divisions functioning in the Department of
Expenditure. It is a professional agency staffed by Cost/Chartered Accountants.
Adviser Cost Office, is dealing with matters relating to costing and pricing,
industry level studies for determining fair prices, studies on user charges,
central excise abatement matters, cost-benefit analysis of projects, studies on
cost reduction, cost efficiency, appraisal of capital intensive projects,
profitability analysis and application of modern management tools evolving cost
and commercial financial accounting for Ministries/Department of Government of
was set up as an independent agency of the Central Government to verify the
cost of production and to determine the fair selling price for Government
Departments including Defence purchases in respect of the cases referred to.
The role of the office was further enlarged and extended to fixing prices for a
number of products covered under the Essential Commodities Act, such as,
Petroleum, Steel, Coal, Cement, etc. under the Administered Price Mechanism
(APM). Since cost/pricing work in the Ministries increased significantly,
various other Ministries/Departments started to have their in house expertise
by seeking posting of officers for work needing expertise in cost/commercial
Post liberalization era, the office is receiving and conducting studies in
synchronization with the liberalization policy of the Government in addition to
areas of cost-price studies.
Adviser Cost’s Office is also cadre controlling office for the Indian Cost
Accounts Service (ICoAS) up to Adviser (Cost) level and looks after training
requirements of the officers for continuous up-gradation of their knowledge in
addition to rendering professional guidance to the ICoAS officers working in
different participating organizations.