There is no one watertight definition of cost accounting, but the various definitions all point to certain common aspects about the subject.
Below are some definitions by certain authorities : “That part of management accounting which establishes budgets and standard costs and actual costs of operations, processes, departments or products and the analysis of variances, profitability or social use of funds” (Chartered Institute of Management Accountants - CIMA) “That which identities, defines, measures, reports and analyses the various elements of direct and indirect costs Cost Accounting : An Introduction MODULE - 6B Elementary Cost Accounting 27 COST ACCOUNTING : AN INTRODUCTION After passing your senior secondary examination, if you set up a small manufacturing unit, say manufacturing of packing boxes, a problem will arise what price of each box you should quote to the buyer.
1-4 In the private sector, the Financial Accounting Standards Board, an independent organization, and the American Institute of Certified Public Accountants (AICPA) supply guidance regarding financial reporting practices.
Typically, cost management is the responsibility of the Chief Financial Officer (CFO) who often delegates much of this responsibility to the Controller.
The accounting Accounting Assumptions Accounting Assumptions An assumption (or convention) is something that is generally accepted or taken for granted without proof.
There are five commonly accounting assumptions The accounting entity assumption - regards that the business is an entity or body separate from its owners, the accounting entity is not always the same as the legal entity.Monetary assumption- assumes that all transactions are recorded in the common monetary unit in use.(dollars and cents) Historical cost assumption - the historical cost or (objectivity) refers to recording of items at their original purchase price.Managerial and financial accounting is only two parts of the cost accounting system.Within these two different aspects of accounting there are many similarities and differences not only between these categories but also in their rules and regulations, management information and reporting requirements as well.The certifications of accountants are also differentiated in these two categories, CMA and CPA.No matter what category you place an accountant in; the job is crucial in the Executive Summary Accounting concepts are the rules and guidelines used in accountancy and one of these is the historical cost accounting.The company sells many styles of earrings, but all are sold for the same price, per pair.Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): January (actual) | 20,000 | February (actual) | 26,000 | March (actual) | 40,000 | April (budget) | 65,000 | May (budget) | 100,000 | June (budget) | 50,000 | July (budget) | 30,000 | August (budget) | 28,000 | September (budget) | 25,000 | The concentration of sales before and during May is due to Mother's Day.award: 10 out of 10.00 points Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio products.Sales and cost data on the speaker follow: Selling price per unit on the intermediate market Variable costs per unit Fixed costs per unit (based on capacity) Capacity in units 59,000 Sako Company has a HiFi Division that could use this speaker in one of its products.