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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:

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:

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Reference:JIT Business Research Mr. Hirano Hiroyuki

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