Role of cost accounting in organization, Cost Accounting

Role of Cost Accounting in Organization

Like part of their jobs, such cost accountants interpret results, and then report them to management and give analysis such assist decision-making in the given departments as:

a) Manufacturing

To measure and report manufacturing costs, Cost accountants work closely along with production personnel. The efficiency of the production departments in transforming and scheduling materials into finished units is evaluated for developments.

b) Engineering

Engineers and Cost accountants translate specifications for new products for estimated costs; via comparing estimated costs along with projected sales prices, they use to help management to decide whether manufacturing a product will be profitable.

c) Systems design

Cost accountants are becoming more included in designing computer integrated manufacturing as like CIM systems and databases corresponding to cost accounting requirements. The thought is for cost accountants, system designers and engineers to develop a flexible production process responding swiftly to market requirements

d) Treasury

The treasurer employs budgets and related accounting reports developed via cost accountants to forecast cash and working capital necessities. Detailed cash reports show whereas there are excess funds to invest or whereas cash deficits exist and require to be financed.

e) Financial accounting

Cost accountants work closely along with financial accountants who employ cost information in valuing inventory for income determination and external reporting reasons.

f) Marketing

Marketing included the cost accountant throughout the product innovation stage, the manufacturing planning stage and the sales method. The marketing department increases sales forecast to facilitate preparing a products manufacturing schedule. Cost estimates, supply, competition, environmental influences, demand, and the state of technology find out the sales price such the product will command in the market and will be offered.

g) Personnel

Personnel department administers the wage rate and pay methods employed in calculating all staff of employ pay. This department keeps adequate labour records for legal and cost analysis reasons.

On this point, it cannot be over-emphasized such cost accounting is merely an information system designed to created information to assist the management of an organization in controlling and planning the organization's activities. It assists the management also to create informed decisions so like to enable the organization to operate at maximum efficiently and effectiveness.

Posted Date: 2/5/2013 2:05:25 AM | Location : United States







Related Discussions:- Role of cost accounting in organization, Assignment Help, Ask Question on Role of cost accounting in organization, Get Answer, Expert's Help, Role of cost accounting in organization Discussions

Write discussion on Role of cost accounting in organization
Your posts are moderated
Related Questions
MARGINAL COSTING As per the Chartered Institute of Management Accountants, London, the phrase 'Marginal cost' means - 'the amount at every given volume of output through which

High - Low Method of Cost Estimation Now, cost estimation is based upon the relationship between past level and past cost of activity. Variable cost is based on the relationsh


Vintage Auto Company manufactures parts to order for antique cars. Vintage Auto makes everything from fenders to engine blocks. Each customer order is treated as a job. Vintage Aut

Evaluate the Acquisition of Manufacturing Equipment XYZ Limited is a medium sized company providing a range of medical solutions. You, the financial manager has been asked to e

sabonis consmetics co. purchased machinery on december 31,2011, paying $50,000 down and agreeing to pay the balance in four equal installments of $40,000 payable each dec 31. an as

An analysis of the fluctuations of current assets and current liabilities that is working capital describes that how the working capital has decreased or increased. We want to iden

Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as they prepare and issue financial statemnents. Let's start by getting an understanding of

You are required to conduct a detailed analysis of all the prime cost and overhead variances. You must create a fictitious company (and a fictitious cost object) which has at least

what is the purpose of cost accounting and its nat ure?