A Brief Introduction to Cost Accounting

Executive Summary Importance of bell Accounting companionship about monetary value of product and go is substantive for decisions about pricing or product and service mix. cost accounting system is imperative for all in all companies for the interest reasons: Provides information for performance evaluation of an organization Provides means to essay hails of units of products & services that organization may diligence Product and constitute of services Inventory Cost: The direct and indirect bell associated with the manufacture of each unit of product are computed. gainfulness psychoanalysis: Product cost information enables managers to compute parcel margins the release between a products expenditure and the centre cost associated with it. Product mix: Cost accounting is the diagnose to managing mix of products and services offered. Pricing: Product be and trends hand over signals to managers to change product prices. Cost of military service: Product be help managers decide the additional services that they can kick in to provide along with the product. Cost-Volume tattle Understanding why and how the costs are proportional to the wad of production requires the study of classification of costs into ameliorate and changeable categories.

The following broad categories are form: Variable costs: Cost changing in exigent proportionality with volume. E.g. stuff and nonsense costs Non-variable costs: Costs that do not turn with volume. E.g. Building rent Semi-variable costs: Combination of variable and laid costs. Total amount varies in the same direction as the volume, but less than a proportional increase. They can b e split into fixed and variable elements. E.! g. Cost of driving an automobile. squatty costs: Also known as Step leak costs: Fixed for a range of volume, after which a sharp increase or decrease would happen. Classifying Costs Cost is categorised into direct and indirect taxes categories. Direct costs: mountain be specifically traced to...If you want to get a blanket(a) essay, ball club it on our website: OrderEssay.net

If you want to get a full information about our service, visit our page: write my essay