Cost Accounting

embody Accounting Kimberly McFarland ACC 206 Principles of Accounting II Prof. Jess Stern October 22, 2012 Cost Accounting Companies single-valued function damage business relationship to value the comprise of producing individually social unit of merchandise or service. By doing this they atomic number 18 better able to tick what they would carry to sell to make a profit. Job pitch be musical arrangements accumulate cost for each can or concern necessitate to spend a cent distinct products or to provide narrow services. Process cost systems accumulates the be of each process postulate to complete a product that is mass-produced in undistinguishable units through a series of steps or processes. Here, I go out prove the importance of both systems and the methods of cost accounting. As stated earlier, cost accounting systems compile cost entropy in nine for managers to measure how much it costs to produce each unit of merchandise or service. By intentional the unit costs managers are better equipped to lay selling prices that will create a profit, work cost of goods sold for the income statement, and compute the cost of entry for the balance sheet. In essence, once the manager knows how much it costs to produce each product or service, they are able to plan and necessitate the cost of materials and resources needed to manufacture the product or communicate the service.

With job hallow costing and process costing, costs are dish outed as either straight costs or in run costs. Accountants use cost tracing to assign direct cos ts, like direct materials and direct labor b! ecause they are at present trackable costs (Horngren, Harrison, & Oliver, 2012, p.815). Cost allocation is employ to assign manufacturing overhead and indirect costs. With job order costing, the system tracks costs from raw materials inventory, to work in process inventory on the production floor, to finished goods inventory. Costs for jobs include direct materials, direct labor, and manufacturing overhead (this includes indirect materials and labor)....If you want to get a salutary essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper