cost accounting


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Cost accounting

A branch of accounting that provides information to help the management of a firm evaluate production costs and efficiency.

Cost Accounting

A branch of accounting that observes and calculates the actual costs of a company's operations. Internal managers, rather than auditors, use cost accounting most of the time to identify aspects of their company where costs can be cut. For example, a manager may enlist a cost accountant to determine the most expensive aspects of his/her business that is, where the money goes. The accountant may make a detailed report so that the manager may make decisions based upon it. Because cost accounting is primarily internal, it need not conform to the Generally Accepted Accounting Principles. It is also called managerial or management accounting. See also: Assurance, Activity-based costing.

cost accounting

The field of accounting that measures, classifies, and records costs. A cost accountant, for example, might be required to establish a system for identifying and segmenting various production costs so as to assist a firm's management in making prudent operating decisions.
Fig. 28 Cost. Major elements of cost.click for a larger image
Fig. 28 Cost. Major elements of cost.

cost accounting

see MANAGEMENT ACCOUNTING.
References in periodicals archive ?
This is why Lee argues that cost accounting forces mathematical relationships that don't make sense, confusing metrics with measurements.
The key take away from this session is that cost accounting has a much bigger role than just complying with external requirements.
CAS 401, "Consistency in Estimating, Accumulating and Reporting Costs." This standard ensures that each contractor's practices used in estimating costs for a proposal are consistent with cost accounting practices used in accumulating and reporting costs.
Recommendation: The Secretary of Defense should direct the military department Chief Management Officers, in consultation with the Under Secretary of Defense (Comptroller) and the Under Secretary of Defense for Acquisition, Technology, and Logistics, as appropriate, after defining the cost accounting requirements, to utilize the requirements as input to the ERPs to help ensure that the ERPs will provide the capability to identify and aggregate cost information for the department's assets in accordance with DOD's defined requirements.
The final portion of this paper reviews the importance of Civil War era cost accounting practices on modern procedures.
Many businesses, including manufacturers, have gradually moved away from pure standard cost accounting, according to Dan Curtis, who took over as director of AMS in January.
This volume is an advanced text on cost accounting, with an emphasis on issues in the health services field for healthcare managers.
To date the majority of the existing cost accounting literature has examined the strategic factors surrounding organizations at a specific point in time.

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