What is cost accounting, Cost Accounting

This can be explained as the process of accumulating, calculating, analyzing, interpreting and reporting cost information that is both helpful and relevant to the internal and external stakeholders of a business entity. External stakeholders are those who have a vested financial interest in a business or organization. For example banks (loans), financial houses (mortgages), investors (investments), etc. Internal stakeholders are the business or organization directors, managers, division heads, etc.


One of the many advantages of cost accounting is that it turns data into information, knowledge and wisdom about a business entity's operations that is useful for:

? measuring performance
? Decreasing or managing costs
? determining the fees or prices for goods and services
? deciding to authorize, alter or discontinue a program or activity

 

Posted Date: 4/1/2013 2:10:13 AM | Location : United States







Related Discussions:- What is cost accounting, Assignment Help, Ask Question on What is cost accounting, Get Answer, Expert's Help, What is cost accounting Discussions

Write discussion on What is cost accounting
Your posts are moderated
Related Questions
Assume B, G and T are in real terms (and in billions of dollars). B t-1  = 1000      G t = 220           T t = 200            i t   = .15     π t   = . 10 a) Calculate th

Prepare a spreadsheet of an overhead budget for the company in Problem 5 on page 216 of the textbook. You have been running a construction company out of your home with your spouse

Introduction of Internal Rate of Return The traditional internal rate of return (IRR) method of project selection has been shown to be inferior to the NPV method due to vario

why is determining the cost to manufacture a product quite a different activity from determining how to control such cost?

OVERHEAD VARIANCES Unlike labour and direct material, the manufacturing overhead is not completely variable with the level of production.   So, standard costs for factory overh

1.    The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital i

on the first day of the current fiscal year $2,000,000 of 10 year 7% bonds with interest payable annually, were sold for $2,125,000. Present enteries to record the following transa

Describe the concept of full cost recovery with illustrative examples.

What are the key reasons for product cost differences among traditional costing system and ABC systems? Explain four decisions for which ABC information is useful?

You are the manager of a firm that sells output at a price of $40 per unit. You are interested in hiring a new worker who will increase your firm's output by 2,000 units per year.