Explore BrainMass

Cost Accounting and Applications

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

What is cost accounting and how do we best use it?

© BrainMass Inc. brainmass.com October 16, 2018, 11:49 pm ad1c9bdddf

Solution Preview


What is cost Accounting and how do we best use it?


Cost Accounting

Cost Accounting is a process of accounting for cost which begins with the recording of income and expenditure or the bases on which they are calculated and ends with the preparations of periodical statements and reports for ascertaining and controlling costs.

Objective of Cost Accounting

The main objectives of cost accounting are as follow:
(i)Ascertainment of cost
(ii)Determination of selling price
(iii)Cost control and cost reduction
(iv)Ascertaining the profit of each activity
(v)Assisting management in decision making

Cost accounting is helpful in making a number of business decisions. By weighing the actual costs versus the anticipated benefit, cost accounting can help a company to avoid launching a product with no real market, prevent the purchase of unnecessary goods and services, or alter the current operational model in a manner that will increase efficiency. Whether utilized to evaluate the status of a department within the company or as a tool to project the feasibility of opening new locations or closing older ones, cost accounting can provide important data that may impact the final decision.
We can make the best ...

Solution Summary

This solution of 767 words explains cost accounting, its objectives, and it's applications in a business setting with examples.

Similar Posting

ACC501 Accounting for decision making: breakeven at Apple

Please includes references, my company is Apple, the product used, use specified periods i.e 2009, 2010 comparison between the two. Any help would be greatly appreciated. Please use the information below as your guide.

By this time, you should have an organization selected and approved for your project.

In this module, we are going to have our first application to that project. Identify any activity in your organization where you can apply breakeven analysis. You must be able to define:

A unit of measurement for the activity
Revenue per unit for the activity
Variable costs for the activity
Fixed costs for the period in the activity

LENGTH: 2-3 pages typed and double-spaced.

The following items will be assessed in particular:

If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual. Estimates should be reasonable, justified and documented.

Your report should include:

The name and nature of the organization
The activity and time period you used
The inputs you used
Your results in an easy to read table format
Any benefits and implications from your results

View Full Posting Details