Cost accounting consists of two main parts: fixed costs and variable costs. Fixed costs do not depend on the manufacturing activity while variable costs depend on the number of units produced.There are two main types of cost accounting: job order costing, where each item produced is broken down as a single job and all costs are tracked per job, and process costing, where items produced are broken down by process and each job has costs allocated by process.
•Measurement of efficiency: Cost accounting measures the efficiency of each product, process or departments by applying standard cost method.Cost control procedure: Cost accounting controls cost by setting standards and compared with the actual. The deviation between them are identified and if required necessary controlling measures may be taken.
•Analysis:
-Conduct ongoing process constraint analyses.
-Report on breakeven points by products, work centers, and factories.
•Analysis:
-Conduct ongoing process constraint analyses.
-Report on breakeven points by products, work centers, and factories.
-Report on margins by product and division.
-Report on periodic variances and their causes, focusing in particular on spending
-Report on periodic variances and their causes, focusing in particular on spending
variances.
-Analyze capital budgeting requests.
-Perform cost accumulation tasks as a member of the target costing group.
-Perform cost accumulation tasks as a member of the target costing group.
•study the cost of conducting business. It helps to determine what type and how much expense will be involved in keeping the businesses current model or strategies. It can also be used to determine changes to be made if needed.
•We talked in detail about what do accountants do
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