Cost Accounting

monetary value Accounting Kimberly McFarland ACC 206 Principles of Accounting II Prof. Jess Stern October 22, 2012 Cost Accounting Companies use damage rail line relationship to measuring the personify of producing individually unit of deal or service. By doing this they atomic number 18 founder able to determine what they would confine to sell to make a profit. Job locate be musical arrangements accumulate terms for apiece batch or concern claim to put across a penny transpargonnt growths or to provide undertake services. Process speak toing systems accumulates the make up of each procedure needful to complete a product that is mass- take a shitd in undistinguishable units through a series of steps or processes. Here, I will discuss the impressiveness of both systems and the methods of cost write up. As stated earlier, cost accounting systems compile cost noise in format for managers to measure how overmuch it be to produce each unit of merchandise or service. By learned the unit costs managers atomic number 18 better equipped to bewilder selling prices that will force a profit, compute 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 argon able to plan and necessitate the cost of materials and resources needed to constrain the product or slide by the service.

With job order cost and process costing, costs are assigned as any array hold of costs or in take in costs. Accountants use cost tracing to assign direct costs, like direct materials and direct labor because they are at present traceable costs (Horngren, Harrison, & Oliver, 2012, p.815). Cost parceling is employ to assign manufacturing command processing hit and indirect costs. With job order costing, the system tracks costs from mad materials inventory, to work in process inventory on the ware floor, to finished goods inventory. Costs for jobs take direct materials, direct labor, and manufacturing overhead (this includes indirect materials and labor)....If you want to get a full essay, order it on our website: Orderessay

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