Purpose of Cost Accounting

3613 words 15 pages
Show More
CH01_Bragg_36794 3/13/01 9:40

M Page 9

PART I

Purpose of Cost Accounting

9

CH01_Bragg_36794 3/13/01 9:40

M Page 10

CH01_Bragg_36794 3/13/01 9:40

M Page 11

CHAPTER 1

Role of Cost Accounting

When properly implemented, the cost accounting function can have a pervasive influence in the modern corporation. Unfortunately, it is not always properly implemented because management often is not completely aware of all the uses to which the cost accounting function can be put. This chapter describes the main categories of activities in which this function can become involved, and can be used as a guide by the controller in creating a well-rounded niche for the cost accountant.

EXTERNAL REPORTING
The key task for the cost accountant is …show more content…

This format tends to have few operational statistics besides percentages of completion and lists of to-do items that must be finished in order to ensure conclusion of the project. Decision-specific reports. Many times the cost accountant is called on to report on a specific issue that occurs only once, after which the report is discarded. For example, a report may be needed that describes the particular quality costs associated with the selection of three prospective production processes the management team is considering installing. Once the decision is made and the installation completed, there is no longer a need for the report. Another example is a review of waste in a production process—the report may cover such information as times elapsed when moving products between manufacturing stations, setup times, cycle times, and the amount of space occupied by idle work in process; this report is concerned less with financial issues than with process efficiency, but it is still the cost accountant’s job to complete it. Clearly, these reports can cover virtually any topic and can include any type of information— financial, operational, or a mix.

•

An enormous range of topics can be covered by internal reports. Because they lack the amount of structure imposed on external reports, they are much more interesting to prepare, giving the cost accountant free rein to express creativity in designing the perfect format that will result in easy readability and effective management

Related

  • ACC 281 week 5 post assessment
    967 words | 4 pages

    statement (Yes. Accounts receivable will be on the balance sheet and the advertising expenses on the income statement) 2. How does financial accounting differ from managerial accounting managerial accounting deals with internal reporting and financial deals with internal reporting (Yes. Managerial accounting deals with internal reporting and financial accounting deals with external entities) 3. What calculation would you use to determine the net income Revenues minus expenses equal net income. (Yes….

    Show More
  • Accounting
    2649 words | 11 pages

    1. A brief history of the two organisations, and their objectives, in as far as they relate to accounting practices regionally and/or internationally, as necessary. 1.1 European Union (EU) 1958 - EU was formed following by the Treaty of Rome Global trading has impacted the treaty to develop standards that support unrestricted market activities internationally. Uniformed accounting standards are required regionally to encourage the capital flow, enhance stakeholders’ protection, and increase the….

    Show More
  • Intermediate Accounting Chapter 2
    18479 words | 74 pages

    ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. 2. 3. 4. 5. 6. Conceptual framework– general. Objectives of financial reporting. Qualitative characteristics of accounting. Elements of financial statements. Basic assumptions. Basic principles: a. Measurement. b. Revenue recognition. c. Expense recognition. d. Full disclosure. Accounting principles– comprehensive. Constraints. Assumptions, principles, and constraints. 28, 29, 30 10 11 Questions 1, 7 2 3, 4, 5, 6, 8 9, 10, 11 12, 13, 14 15, 16, 17….

    Show More
  • Should Accountants Have a More Significant Role in Corporate Decision-Making
    2153 words | 9 pages

    Salehi and Aseman, 2012). Accounting and financial information, which is becoming easier to collect and access, is widely employed by decision makers as the main resource of information in the process of managerial decision making. In other words，the primary purpose of an accounting….

    Show More
  • Harbor City Community Center
    981 words | 4 pages

    1) In and FPO context, full-cost accounting can be used to define cost objects. However, since NPOs are not outputting products, full-cost accounting is used to serve a different purpose of cost allocation. Full-cost accounting allows an NPO to be broken down into cost centers, which Young suggests be thought of as “buckets” during the Stage 1 analysis. The two categories of centers are mission centers and cost centers. The mission centers deal with the NPO’s main purpose, generally charging for a….

    Show More
  • Chap 1-3 International Accounting Course Notes
    2436 words | 10 pages

    sales and trade can be a source of higher profit margins through additional sales. Unique products or technological advantages can provide competitive advantage that a company wishes to exploit by expanding sales in a foreign market 2. What accounting issues arise for a company as a result of engaging in international trade? b. New accounts added to the chart of accounts, foreign currency and exchange rates and the risk of falling rates, hedging, whether or not it is profitable for a company….

    Show More
  • Synthetic Leases
    3547 words | 15 pages

    institutions, and accounting firms. But is the synthetic lease a panacea for the corporate executive faced with a leasing decision? Are they the perfect solution for keeping real estate assets oil the company balance sheet? Are there any drawbacks to a synthetic lease? Before entering into a synthetic lease, the corporate tenant should know the potential shortcomings of a synthetic lease as well as when and when not to use one.….

    Show More
  • Accounting Developments in Poland
    6804 words | 28 pages

    world. (WBO, 2010) Historical Background A national accounting chart for Poland did not exist before the 1930s although an accountants’ Association was already established….

    Show More
  • Accounting Theory
    3340 words | 14 pages

    ACC307 – Accounting Theory Assignment Name: Chun Ho Hui Student ID: na20150418 Case Study 1 Questions 1. Explain why principles-based standards require a conceptual framework. A: Conceptual framework can be defined as “an attempt to define the nature and purpose of accounting” (Team, 2015). Conceptual framework is essential for principle-based standards because it lays out a fundamental structure for principles-based standards. Setting the standard on and relate to an established body….

    Show More
  • Executive Plan of Top Quality Lighting Products Provider Atha
    3488 words | 14 pages

    Department Accounting and Finance Department Stephen Nystrom Professor Gotches Winter Quarter BUS 3011 Table of Contents 1. Executive Summary pages 3 - 4 2. Description of the Functional Area and Purpose Statement pages 4 - 6 A. Human Resource Area pages 4 - 5 B. Accounting and Finance….

    Show More

Popular Essays