Nobody downloaded yet

Cost Accounting - Case Study Example

Comments (0) Cite this document
In any company whether it’s a manufacturer of goods or a software development company, accounting systems are designed to provide managers and stakeholders with the key financial information needed for decision making. Modern cost accounting supply management and financial…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.4% of users find it useful
Cost Accounting
Read TextPreview

Extract of sample "Cost Accounting"

Download file to see previous pages in the coordination of activities and functions within the corporate framework of the firm as well as helping administer each of the functional areas or activity centers of the company.
The ability of internal managers to plan and control the activities within the company rely heavily upon the timeliness and quality of the financial and cost information provided by accounting. Cost accounting provides the necessary internal financial framework for management to plan and control the firm’s activities while providing feedback (Horngren & Foster & Datar). The concept of feedback refers to the ability of management to examine past decisions and financial performance in order to better formulate the companys strategy for the future. The three major functions of modern accounting systems are:
To help internal management plan, control and make regular everyday decisions- This routine information helps managers better manage their firm resources, assist with strategic short and long term planning, and determining product/service cost or total costs by allocating the different direct and indirect expenses to the appropriate cost driver or activity.
Non-routine internal reporting- There are many instances when a manager or internal decision maker needs to have specific internal financial information that is not normally reported under their standards accounting system which involve some new potential capital investment or activity.
Financial external reporting to stakeholders- Investors, banks, government and other outside parties require information regarding the firms past financial performance and financial reporting provide the means for these parties to learn about the companys operations and overall financial performance.
There are different approaches in modern cost accounting to help managers determine the total product service or service costs, as well as allocating expenses to the appropriate product or service within their business portfolio. The design of ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Cost Accounting Case Study Example | Topics and Well Written Essays - 1000 words”, n.d.)
Cost Accounting Case Study Example | Topics and Well Written Essays - 1000 words. Retrieved from
(Cost Accounting Case Study Example | Topics and Well Written Essays - 1000 Words)
Cost Accounting Case Study Example | Topics and Well Written Essays - 1000 Words.
“Cost Accounting Case Study Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


Cost Accounting Approaches

...?ACADEMIA RESEARCH Cost Accounting Approach For Business Maribel P. Jabido COST ACCOUNTING APPROACH In evaluating product mix decisions, two methods can be applied: Activity-based Costing (ABC) and Theory of Constraints (TOC). ABC focuses on product cost that is affected by environmental spending while TOC focuses on maximizing profit and at the same time minimizing the production of goods that causes more damage to the environment. When implementing the ABC system, costs are allocated to specific activities in operating a business such as planning, engineering, or manufacturing of products. With ABC,...
4 Pages(1000 words)Essay

Cost Accounting

...the various costing methods, absorption costing and marginal costing are the two important tools that are widely used for managerial decision making. This piece of research paper describes the differences between these two methods and explains the arguments for and against these costing methods. Marginal Costing As Lucey and Lucey (2002, p. 296) defined, marginal costing is an accounting system in which variable costs are charged to some specific cost units for a period of time and fixed costs are fully written off against the total contribution, which is the value of...
5 Pages(1250 words)Research Paper

Cost Accounting

...?Cost Accounting Cost Accounting Absorption and Marginal costing This paper will critically evaluate the costing method used by different management systems by assessing their convenience in terms of advantages and their shortfalls. The common costing methods used in cost accounting include absorption costing and marginal costing. Absorption cost (also known as full costing) is costing systems which includes direct materials, direct labour and variable and fixed manufacturing overhead as product...
10 Pages(2500 words)Essay

Managerial and Cost Accounting

...Managerial and Cost Accounting Introduction Managerial accounting is the identification, collection, classification and reporting of financial and non-financial information, which is useful to internal users in planning, controlling and decision making (Rich and Jones 667). Managerial accounting is a vital function of an organization. It aids in planning for the future. Managers use managerial accounting reports such as budgets to make future projections for the organization. Managerial accounting also helps in instilling control within an organization. This is because managerial accounting provides information and...
10 Pages(2500 words)Assignment

Cost Accounting

...Running Head: cost accounting Cost accounting [The of the appears here] [The of the appears here]Planning and control models: While financial accounting with its annual report relates to the over all progress of the enterprise, cost accounting must aid and fulfill management's needs for planning and control information. It must concern itself with the details of the progress and the contributive efforts of the business unit. Budget (planning and control model): The planning process is best started by examining the past particularly with regard to trends and directions, and then forecasting the future course by projecting...
2 Pages(500 words)Essay

Managerial and Cost Accounting

...of the few faculty members without a doctorate degree recruited by Harvard (Antony, 2003). Mr. Ross used to influence people only through his teaching inside the classroom. He neither wrote an article or a book in order to influence people like most writer or professors generally do. The author became a research assistant to Mr. Ross in the year 1940 for a second-year course named Control, a course which is a sort of contrast with the traditional Cost Accounting course. Nevertheless, the course became successful as a result of the reputation Mr. Ross has got as an impressive teacher of accounting at Harvard. The first appearance of management accounting in...
14 Pages(3500 words)Assignment

Cost Accounting

...RUNNING HEAD: Cost Accounting Cost Accounting of This paper seeks to comment on theremarks made by the Chief executive officer (CEO) of Home Workout Equipment Corporations to a colleague that he does not understand why other companies are wasting so much time in the budgeting process. For the said CEO, setting the company goals is done by him and that everyone would just need to strive to meet them. To follow what the CEO wants to be done may be easy for a number of managers and employees but not at all times. When the subordinates including the managers have to do some work that would require their decision-making skills in the work place, it would be hard...
2 Pages(500 words)Case Study

Cost Accounting

...Cost Accounting Contents Reference 10 11 Part ArcelorMittal is one of the leading steel manufacturing companies in the world. In 2010 ArcelorMittal produced almost 90.6 million tones of steel which represents almost eight percent of steel production of the world (ArcelorMittal-a, n.d). While manufacturing a stainless steel a lot of processing takes place. Separate costs are incurred in every process and they are recorded as per that. The raw material has to undergo many sub processes for manufacturing the steel. Steel is made of two elements namely iron and carbon. Stainless steel contains 1.2% iron where as the other steel like cats steel and carbon steel has 2% of carbon...
8 Pages(2000 words)Essay

Cost Accounting and Cost Accounting System

...Cost accounting refers to the process of measuring, ifying, analyzing and collecting costs of a job, product. In summary, it is also the act of accounting for the occurrence and controlling costs with the objective of ascertaining operating efficiency of a business. On the other hand, cost accounting systems are the internal information systems structures and procedures that are applied by a company to ensure proper cost accounting. Cost system is one of the scopes of cost accounting, although both have a common objective of providing relevant decision making information to the management (Lal. 2008). The most important feature of a cost accounting system is the regularity with which relevant cost information is provided to users... . There...
1 Pages(250 words)Assignment

Cost Accounting

...Case Study The practices that business enterprises engage in are guided and informed by legal provisions, and violation of regulations and laws outlined by such provisions constitutes a crime (Vona 124). In the contracting business, Jumbo Corporation is well aware of its requirements to be in that business. Having been contracted by the government implies that it had met the criteria of qualification in order to get the contracts. Since the corporation had numerous government contracts, it is expected that it is in a position to address all the necessary activities that pertain to these contracts. The charging of the contracts by the company employees is supposed to account for the two types of contracts; fixed-price and...
2 Pages(500 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Case Study on topic Cost Accounting for FREE!

Contact Us