Cost Accounting Overview

Cost accounting = Process of measuring, analyzing, computing, and reporting the cost, profitability, and performance of operations Cost management = Process of planning and controlling the cost of a business Costing = Systematic procedure for determining the unit cost of output produced or services rendered Financial accounting = Recording financial transactions in a systematic manner

Provides management with the cost of producing each article or rendering a service = Cost accounting Allows a business to predict impending expenditures = Cost management Begins with regarding and classifying incomes and expenditures = Cost accounting Is a refinement of financial accounting = Cost accounting

Determining the total cost and its constituents = Cost accounting Planning and controlling costs to prevent going over budget = Cost management Accounting for cost from income classification to cost control = Cost accounting Measuring, analyzing, computing, and reporting costs and performance = Cost accounting

<p>Analyzing expenditure to know total cost and its constituents = Cost accounting Form of management accounting for predicting expenditures = Cost management Step further to financial accounting in determining manufacturing costs = Cost accounting Recording financial transactions systematically = Financial accounting</p> Signup and view all the answers

<p>Preparation of periodical statements for ascertaining and controlling costs = Cost accounting Reducing the chance of exceeding budget through expenditure planning = Cost management Analysis of the expenditure to determine unit cost of output or services rendered = Costing Recording financial transactions in an organized manner = Financial accounting</p> Signup and view all the answers

<p>Cost Management = Method of reducing operating or production expenses Resource Planning = Determining and controlling the resources needed to perform activities Cost Estimating = Predicting how much it will cost to perform project activities Budgeting = Planning and estimating financial resources needed for the project</p> Signup and view all the answers

<p>Estimating = Applying methods to predict project activity costs Budgeting = Planning and estimating financial resources for the project Resource Planning = Defining required resources to complete the project activities Cost Management = Controlling costs to complete the project within approved budget</p> Signup and view all the answers

<p>Initial Phase = Defining required resources to complete the project activities Ongoing Phase = Determining and controlling resources needed for activities or assets Continuous Process = Analyzing production and streamlining operations to keep costs low Refinement Phase = Adjusting cost estimates based on available project information</p> Signup and view all the answers

<p>Physical Resources = Time, material, labor, equipment, etc. Historical Resources = Information from comparable projects for defining needed resources Financial Resources = Funds allocated for project activities Human Resources = Skilled workforce required for project completion</p> Signup and view all the answers

<p>Cost Reduction = Providing less expensive products or services to consumers Expense Management = Managing and controlling costs during project execution Accuracy Improvement = Refining cost estimates based on evolving project information Streamlining Operations = Analyzing production processes to keep costs low</p> Signup and view all the answers