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
While on a business trip to Texas, David attended a mortgage foreclosure auction. At the auction (held on February 4, 1999), he acquired an abandoned sugarcane farm near Pearland.

Pecos Canyon Winery is a small vineyard/winery located in the Big Bend area of West Texas. The initial cabernet grape vines were planted in the spring of 2004 with the first wine p

The Critical Thinking about CVP is described below CVP is more than just a mathematical tool/device to calculate values such as the break-even point. It can be used for the cri

SALES REVENUE VARIANCE (SRV) The word 'Sales Variance' is indicated by the expression 'operating profit variance due to sales' by ICMA.  It is described as 'the difference betw

A company has an authorized share capital of 250 million divided into 1,500,000 ordinary shares of sh.100 each and 1,000,000 preference shares of sh.100 each. 1,000,000 ordinary sh



what is rowan incentive system

limitations in cost plus pricing

Mr. Homer Simpson, President and Chief Executive Officer of Duff's Beer Making Supplies Inc. recently hired you as the new budget analyst for his company.  As your first duty, he h