Purpose of cost accounting information, Cost Accounting

Purpose of Cost Accounting Information

Cost accounting is employed for a number of reasons, some of that are briefly described in the given points as:

a) Accounting for costs

This may be seen like a record keeping or score maintaining role. Information should be gathered and analyzed in a manner that will help in planning, decision and control making

b) Planning and Budgeting

This includes the quantification of plans for the future operations of the enterprise; that plans may for the short or long term, for the enterprise like a whole or for the individual aspects of enterprise.

c) The control of the operations of the enterprise

Control may be assisted via the comparison of actual cost information along with that involved in the plan. Any type of differences between actual and planned events can be investigated and then corrective action implemented like suitable

d) Decision Making

Cost accounting information assists in the creation of decisions concerning the future operations of the enterprise; that decisions creation may be assisted via the information from cost volume and cost- techniques– profit analysis.

e) Resource allocation decisions

As an example: product pricing in determining where to reject or accept jobs. It is based on cost and revenue implications of relevant decisions

f) Performance evaluation

To measure and evaluate actual performance, cost accounting information is used and so like to make a decision of the degree of efficiency or optimality of resource utilization.

Posted Date: 2/5/2013 2:03:18 AM | Location : United States







Related Discussions:- Purpose of cost accounting information, Assignment Help, Ask Question on Purpose of cost accounting information, Get Answer, Expert's Help, Purpose of cost accounting information Discussions

Write discussion on Purpose of cost accounting information
Your posts are moderated
Related Questions
Hale Company makes sets of wrenches. They are trying to decide whether to continue to make the case the wrenches are sold in, or to outsource it to another company. The direct mate

Q. What is the amount of compensation expense recognized for stock options for each year of the vesting period, given the following information?  A firm awards stock options at-

Principles of Marginal Costing The principles of marginal costing are as given: 1. Period fixed costs are similar, for any volume of sales and production provided suc

Example of Contract Account  A company has been awarded a contract to build a house.  It is a contract Number 45 for the company and the contract price is shs.2.65 millio

Financial Statement Issues that are Unique to Manufacturers Different from the retailers, manufacturers have three exclusive inventory category: 1) Raw Materials, 2)Work in

explain the practical application of differential costing with the help of suitable example.

INSURANCE Trustees may insure trust property against loss or damage by fire subject to the following conditions:   1. The insurance must not exceed the full value of the proper

The follow data relates ot year 20XX for Plano Manufacturing Company: Units produced - 2,000 Units sold - 1,800 Selling price - $200 / per unit Direct material costs - $80,000 Dir

The Accountant has also asked for you to assist in preparing the statement of financial position (balance sheet) for the Construction in Building partnership for the year ended 30

If question (CA IPCC) is silent which method to follow: avg cost or fifo or lifo?