ACCO.506COST ACCOUNTING

DATE: 11/09/09

JOSE CINTRON,MBA

 Cost Accounting

Cost accounting systems are part of an enterprise’s information system and refer to the internal cost tracking an allocation systems to track costs and expenditures. These are internal rather than external accounting systems.

Cost accounting measures are the principal financial drivers in day to day business decision making ,moving every aspect of the firm’s activities.

Article related to Cost Accounting

Cost accounting is a difficult matter that specialist accountants use to examine and report on business expenses to ensure financial control. Such expert cost accounting might involve absorption costing, marginal costing, break even and variance analysis

Managerial, Cost and Financial Accounting

Managerial accounting provides the essential data with which the organizations are actually manage. Managerial accounting is also named as management accounting or cost accounting.

Financial accounting offer the scorecard by which a company's overall past performance is judged by outsiders.

The great news for small business is that the majority do not need such specialist costing analysis as then proprietor usually has personal detailed knowledge of all expenses incurred within the entity.

 

Article: Oct 20, 2008 ... Maintaining a system of bookkeeping using accounting software can assist the cost accounting for profit .

Cost Accounting for Profit with Accounting Software

Maintaining a regular system of bookkeeping using affordable accounting software can assist the cost accounting for profit exercise by providing the source and extent of the measures to be taken.

CONCLUTION FOR ARTICLE Maintaining a regular system of bookkeeping

using suitable and affordable accounting software can assist the cost accounting for profit exercise by providing the source and extent of the measures to be taken.

Benefits of cost accounting

One of the many benefits 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 reducing or managing costs  determining the fees or prices for goods/services deciding to authorize, modify or discontinue a

program or activity

Benefits of cost accounting Another benefit is that information on the costs

programs and activities may be used as a basis to estimate future costs in preparing and reviewing budget requests.

Once budgets are approved and executed, cost information serves as a useful feedback on performance.

Costs may be compared to known or assumed benefits to identify value-added and non-value added activities

Benefits of cost accounting Cost accounting is especially important for

fulfilling the objective of assessing operational performance.

The objective is to improve the efficiency and effectiveness of operations by furnishing program to managers and others with timely and relevant cost-based performance information to allow for continuous improvement in delivering outputs and outcomes to stakeholders.

REFERENCES Full Cost Accounting-Retrieved on November 9, 2009 from: http://www.ce.cmu.edu/GreenDesign/gd/education/FCA_Module_98.pdf     Introduction to Managerial Accounting--Retrieved on November 9, 2009 from:

http://www.accountingformanagement.com/       Cost Accounting For Profit With accounting software--Retrieved on November 9, 2009 http://www.diyaccounting.co.uk/articles/accounting_software/cost_accounting_for_profit

. htm Financial accountancy-Retrieved on November 9, 2009 from:

http://en.wikipedia.org/wiki/Financial_accountancy   What is cost accounting-Retrieved on November 9, 2009 from: http://ezinearticles.com/?What-is-Cost-Accounting?&id=708992