Cost Accounting

2 Pages 614 Words

What Is My Opinion on Cost Accounting

Accounting is often called "the language of business." The acceleration of change in our society has contributed to increasing complexities in the "language", which is used in recording, summarizing, reporting, and interpreting basic economic data for individuals, business, governments, and other entities. Sound decisions, based on reliable information, are essential for the efficient distribution and use of the nation's scarce resources. Accounting, therefore, plays an important role in our economic and social system.

The Cost Accounting course focuses on the role of the cost accountant to provide accounting information to managers as an aid in making economic decisions. The course emphasizes the development and application of cost systems as they apply to cost inputs (materials, labor, overhead), and job order versus process costing. Students will be introduced to actual versus standard cost accounting, direct versus full absorption costing, and budgeting.

COST ACCOUNTING
This is the area of accounting that focuses on cost by examining cost flow, cost per unit, cost behavior, and cost management issues. It measures levels of cost and the impact of those costs on the efficiency and operation of an individual or organization. It is also concerned with revenue and revenue per unit in its management reporting process. It operates under principles and procedures as set forth by the Cost Accounting Standards Board, known also as CASB.





Financial Accounting
This is the area of accounting that has the goal of analyzing, recording, and summarizing financial operations using expense rather than cost, and without an emphasis on per-unit calculations. As is the case with cost accounting, financial accounting uses five types of accounts: assets, liabilities, capital (or equity), revenue, and expense (rather than cost). It operates under principles and procedures known as Generally...