Cost accounting is the accounting process of recording, tracking and analyzing the costs associated with an organization in Washington. There are three basic approaches to cost accounting explains this site will explain all three in detail.
Clayton Accounting
(509) 547-8183
2508 W Sylvester St, Suite B
Pasco, WA
AA Accounting Tax & Business Services
(253) 472-7550
3570 E F St
Tacoma, WA
Andrews & Turley Accounting
(253) 833-8183
230 Auburn Way S Ste 1b
Auburn, WA
Clark D Edson CPA
(425) 861-8500
8350 164th Ave Ne
Redmond, WA
Accountants Inc.
(425) 214-1453
10900 NE 8th Street, #1414
Bellevue, WA
Jim Black16310 NE 80th St Redmond, WA Jim Black 16310 NE 80th St
Redmond, WA
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Allied Business Systems
(425) 576-9747
10604 Ne 38th Pl Ste 118
Kirkland, WA
Bruton & Schellberg Incorporated PS
(360) 671-0700
119 N Commercial St Ste 990
Bellingham, WA
Fiducial Inc
(360) 256-9836
12003 Se Mill Plain Blvd
Vancouver, WA
C.R. Adams Accounting & Tax Service
(626) 430-8167
Serving Your Area
Seattle, WA
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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.