Cost
Accounting Helps a Business to Thrive and Grow
This accounting is also unique, in that reporting is for the company's management and is rarely, if ever, reported to external sources. The reason for this is that cost details of a product or service are secret and not be shared with competitors. If a competitor knows your costs, that he will know how to cost his bids for new contracts to win the contracts every time. Costing involves collecting and reporting the cost elements of a product or service, which include direct labor, indirect labor, material costs, burden costs and administrative costs. The costs of a business are separated and put into categories so reporting and financial analysis of these costs can be very detailed. There are a few different methods of cost accounting, such as Standard Cost, ABC Costing, and Job Order Costing. The method of costing used in a particular business will be determined by the type of product or service, and also management's requirements. Cost Accounting is used in many different types of businesses, including manufacturing, hospital and health care and service types. This type of accounting is actually used in every business, although in many very small businesses the process is very informal and may be done in the owner's head. Many businesses have very poor cost systems. A business that knows its true costs to manufacture its product or service certainly has an advantage when it comes to making profits and acquiring new work. If every cost can be reported and analyzed, than every cost can be improved. If a cost is unknown, it is very hard to know how to improve it, and it is very dangerous to quote on new work. Many businesses are in trouble because work was acquired at a price where they are unable to make a profit. Some Things You May Be Interested In: SITE CONTENTS:
About us at cost-accounting-info | About us at cost-accounting-info.com The Cost Accounting Basics You Should Know | Cost accounting basics including how a product or service is costed and requirements for a Cost Accountant, costing standards, burden allocation, cost elements Accounting Basics | Accounting basics including defining accounting, basic principles, terms and uses of accounting Accounting Cost Elements Explained | Accounting cost elements explained: Direct labor, indirect labor, burden, material costs, and admin costs Understanding Cost Accounting | Understanding cost accounting: what it is, who uses it, different types. Cost Accounting Methods | Cost accounting methods used including standard cost, activity based costing and job order cost accounting. Inventory Costing | Inventory costing accounting should follow accounting principles by using the lower of cost or market for valueation Accounting Job Descriptions | Accounting job descriptions for many accounting positions, to help you determine which is best for you. Sample Accounting Resume | A sample accounting resume from an actual Accountant that has produced positive results many times. Financial Analysis | Financial analysis reporting and how to. Tools used and what makes an excellent or poor analysis The Top Cost Reports | Excellent cost reports are COGS, production, scrap and biggest losers. Management needs good cost reports to increase efficiency. Top Business Reports | Business reports including business plans, budgets, forecasts and flash reports. What these reports are and what is normally expected to be included. Business Accounting Software | Business accounting software from spreadsheets to manufacturing resource packages Manufacturing Accounting Software | manufacturing accounting software is often called MRP or ERP software.This is a complete enterprise wide software that effects all departments of the company. The New Microsoft Upgrade | The new microsoft upgrade and why you should update you Excel now Business Presentation Software | Business presentation software is a very good way of getting your point accross to small or large audiences. Make Your Own Website Business | You can make your own website business using this sitebuilder that will help you step by step Contact us | Contact Us page for cost-accounting-info.com Cost Accounting Blog | The Cost Accounting Blog keeps you up-to-date when changes are made to the cost-accounting-info.com website. Subscribe here. |