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
Expenses paid in previous of their use or consumption is termed as prepaid expenses. At the ending of the year, a portion of the payment keeps unconsumed and is treated like an ass

Alameda Service center just purchased an automobile hoist for $ 14000. The hoist has a 6 year lifeand an estimated salvage value of $1481. Installation costs were $3020, and freigh

QUESTION 1 Job costing Create a spreadsheet solution to the following problem. Follow the template provided. Play the Job cost podcasts and work through the example problem in tho

Unrecaptured Sec. 1250 Gain and 1231. Mr. Briggs purchased an apartment complex on January 10, 2011, for $2 million with 10% of the price allocated to land. He sells the complex on

Now assume that it is possible to distinguish consumer types one and two and there are no consumers of type three and the firm can charge a two part tariff. What would the optimal

Total profit means the total revenue excluding the total cost of the certain products. Average profit defines the profit which comes and achieved after selling each unit. Total

advantages and disadvantages of just in time

what will a $5,000,000 investment be worth at 3.5% interest compounded quarterly in 10 years?

First In First Out or FIFO Method - Work in Progress This method considers merely those costs incurred throughout the recent period.  Equivalent units are calculated given a