As the name suggests, cost accounting is concerned with the cost. Cost Accounting is a type of accounting which involves the process of collecting, analyzing, summarizing and evaluating various alternative courses of action. It assesses the input costs of production and the fixed costs such as depreciation of capital equipment by company’s cost of production. While financial accounting considers money as the economic performance measurement, the cost accosting measures money as the economic factor for the production. It measures and records all the costs selectively, and then it further compares the input results with the output in order to measure the financial performance of a company. Cost accounting makes the budgets for the company involving the actual cost of all the company’s operations, processes. It analyzes the variances, profitability or the social use of the funds. Cost accounting mainly focuses on the understanding the company’s earning and money loss, so that it can provide the input for the future profits.
Cost accounting helps the company in the decision making process. It sets up the costs control programs which improves the net margins in the future for profit generation.
Types of cost accounting:
There are following types of cost accounting:
- Lean Accounting: This type of cost accounting helps the company in developing such a management accounting system which helps the company while passing through the lean transformation. This management accounting system aids to the lean philosophy. It also measures the excellent business practices in the lean enterprise. Lean accounting provides the information to support the lean transformation. It helps in decision making which increases the customer value, growth and profit throughout the organization.
- Activity based costing (ABC): It assigns indirect costs to the product by recognizing the activities which a company performs such as relationships between costs, products and activities. The indirect costs which are assigned include management and office staff salaries. These activities are not identified with the help of cost accounting.
- Throughput accounting: This accounting, an important decision and measurement making tool, is based on the Theory of Constraints (TOC). It helps in enterprise profitability improvement by providing decision support information such as identification of factors which can limit the performance, growth.
- Environment accounting: It recognizes the resources and measures and communicates the company costs which can include costs of environment fines, penalties, taxes, investment in the environment safety such as waste management costs, pollution prevention costs etc. It incorporates the economic as well as the environment information.
- Life cycle costing (Life cycle analysis, eco-balance): It identifies the least cost alternatives for a certain time period. It compares the initial investment options. It directs the ways to impact the present and future costs which are pending. It helps in making a better informed decision.
- Resource consumption accounting: This is a new management accounting approach which was conceived around 2000 by amalgamation of German Grenzplankostenrechnung (GPK) and U.S. activity based costing. So it incorporates the GPK accounting and Activity based costing practices. It provides the decision support information for enterprise optimization.
- Target costing: It is a pricing method which involves the target cost setting. It subtracts a desired profit margin from the present competitive market. It includes steps like defining the product, setting the price and cost targets, target achieving and maintaining the competitive costs.
Cost Accounting Assignment Help
Cost accounting evaluates the whole costs which are involved in any business conduct. The managers use the cost accounting for the expenses determination, i.e. what and how much expense is involved in the maintenance of present business model. It further gives the current situation data. At ozassignmenthelp.com.au, we offer the best online assignment help. The cost accounting assignment help is now available at affordable prices with round the clock on time delivery. Cost Accounting Assignment Help is provided Australia’s leading online assignment help company. Oz Assignment Help offers the best online cost accounting assignment help to the students. We offer the best quality online Cost Accounting Assignment Help at cheap prices.