 |
Cost
Accounting Helps a Business to Thrive and Grow
Cost
Accounting may also be called Managerial
Accounting or Management
Accounting. This accounting is quite different from normal
general
ledger or balance sheet accounting. The accountant will work with much
more detail, often working with fractions of a penny in determining the
cost of a product or service.
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:
Bookkeeping
Information
Free
Small Business Forms for your small business to
download, modify and print 24 hours a day, 7 days a week.
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.
|
|
|