Cost accounting is the accounting process of recording, tracking and analyzing the costs associated with an organization in Mississippi. There are three basic approaches to cost accounting explains this site will explain all three in detail.
Byrne CPA Firm PA
(662) 369-2913
144 E Commerce St
Aberdeen, MS
Personnel Plus Inc
(601) 206-1620
404 Legacy Park
Ridgeland, MS
Piltz Williams Larosa & Company
(228) 374-4141
1077 Tommy Munro Dr
Biloxi, MS
David J Boolos Accounting
(601) 634-1512
3527 Wisconsin Ave
Vicksburg, MS
AccuBooks
(601) 992-7998
216 Avalon Cir
Brandon, MS
Eaton Richard CPA
(662) 837-3245
101 S Commerce St
Ripley, MS
Duke Levy And Associates Inc
(228) 467-5212
1711 Waveland Ave
Waveland, MS
Business Services Plus
(601) 584-0777
206A Hwy 42
Petal, MS
Gay & Joseph, CPA, PC
(706) 884-7331
Serving Your Area
Forest, MS
Tolleson Michael D PA CPA
(228) 762-4518
1641 Jackson Ave
Pascagoula, MS
|
An accountant who keeps records of the costs of production and distribution.
orCost accounting is the process of tracking, recording and analyzing costs associated with the activity of an organization, where cost is defined as 'required time or resources'. Costs are measured in units of currency by convention.
There are now at least three approaches: standard costing, activity-based costing (discussed here), and throughput accounting.
A cost that remains constant, regardless of any change in a company's activity.
A good example is a lease payment. If you are leasing a building at $2,000 per month, then you will pay that amount each month, no matter how well or how poorly the business is doing.
Costs were originally considered fixed (the term comes from a Latin root meaning "constant"). In larger organizations, some costs tend to remain the same even during busy periods, while others rise and fall with volume of work. A more convenient way of categorizing these costs is to define them as either fixed or variable. Fixed costs were associated with the business administration, and did not change during quiet or busy times. Variable costs were associated with productive work, and naturally rose and fell with business activity.
In the early twentieth century, as organizations began getting more complex, managers needed a simple way to make decisions about products and pricing. Since most costs at the time were variable, managers could simply total the variable costs for a product and use this as a rough guide for decision-making.
For example: In order to make a railway coach a company needed to buy $60 in raw materials and components, and pay 6 laborers $40 each: total variable costs of $300. If managers knew that making a coach required spending $300, then they couldn't sell below that level without losing money. Any price above $300 became a contribution to the fixed costs of the company (say $1000 per month for rent, insurance and owner's salary). So the company could sell 5 coaches for $3000 or 10 coaches for $4500 and make a profit of $1500 in both cases.