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Cost Accounting
Cost Accounting
It refers to calculating the production cost in the manufacturing industry, and meaning a kind of procedure of adding the cost required for processing to the material cost.
Cost Accounting is performed for the following purposes:
Thus there are several kinds of Cost Accounting by purpose, and thinking of it from the standpoint of the category of industry/business the company belongs to, or of the standard for calculating costs and its range to be covered, Cost Accounting can be also classified into the following:
Looking at Cost Accounting by purpose, these various kinds of Cost Accounting are used as follows:
It refers to calculating the production cost in the manufacturing industry, and meaning a kind of procedure of adding the cost required for processing to the material cost.
Cost Accounting is performed for the following purposes:
- financial accounting:
- the documents for financial statements are prepared.
- budget control:
- the documents for budget drafting and control are prepared.
- price estimation:
- the documents for determining sales prices are prepared.
- management plan:
- the documents for profit planning and management planning are prepared.
- cost control:
- the documents for cost control are prepared.
Thus there are several kinds of Cost Accounting by purpose, and thinking of it from the standpoint of the category of industry/business the company belongs to, or of the standard for calculating costs and its range to be covered, Cost Accounting can be also classified into the following:
- the category of industry/business of the company:
- process costing and job costing
- the standard for calculating costs:
- actual cost accounting and standard cost accounting
- the range of costs to be covered:
- full cost accounting and direct cost accounting
- others:
- special cost studies
Looking at Cost Accounting by purpose, these various kinds of Cost Accounting are used as follows:
Reference:JIT Business Research Mr. Hirano Hiroyuki