On this occasion will summarize and share about the Role of Budget Cost Accounting, Control, Pricing, and Profit Determination, happy reading …
Table of contents :
- Definition of cost accounting
- Understanding Cost Accounting according to the experts
- 1). RA Supriyono
- 2). Mulyadi
- 3). Abdul halim
- 4). Schaum
- 5). Carter and Usry
- Role of Budget Cost Accounting
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Definition of cost accounting
Cost accounting is one part of the field of accounting which includes recording process activities and monitoring all cost activities and submitting such data or information in a report.
Companies in carrying out all activities for profit or profit cannot be separated from costs.
Understanding Cost Accounting according to the experts
Below is the understanding of accounting according to experts
1). RA Supriyono
Cost accounting is a branch of accounting which is a management tool for monitoring and recording cost transactions systematically and conveying cost information in the form of cost reports.
Cost accounting is the process of recording, classifying, summarizing and presenting the costs of making and selling service products in certain ways as well as interpreting them.
3). Abdul halim
Cost accounting is accounting that talks about determining the cost of a product that is produced or sold in the market either to fulfill orders and orders or to maintain the availability of merchandise to be sold.
Cost accounting is a procedure for recording and reporting the measurement results of the cost of producing goods or services.
5). Carter and Usry
Cost accounting is the calculation of costs with the aim of planning and controlling activities, improving quality and efficiency and making routine or strategic decisions.
Also Read: The cost of quality
Role of Budget Cost Accounting
Below is the role of cost accounting.
1). Implement cost calculation methods that allow controlling activities to reduce costs and improve quality.
2). Control the physical quantity of inventory and determine the cost of all products and services produced, for pricing purposes and for evaluating the performance of a product, department, or division.
3). Choose the company’s costs as well as profit in one year accounting period or for other shorter periods. This includes determining inventory value and cost of goods sold in accordance with external reporting rules.
4). Choose between two or more short- and long-term alternatives, which can change your income or expenses. ”
Cost control begins by selecting costs that must be spent over the budget, then comparing the actual costs (actual costs) with the costs that have been previously applied (budget).
In this case, the budget will be the standard cost. If there is a certain difference (difference) in costs. Analysis of the cost difference assets includes types of costs that are deviating,
The amount of cost deviation, the position where the deviation occurred, the cause of the deviation and the party that must be responsible for the deviation.
For the purpose of determining the cost of a product or service, cost accounting records and accumulates costs in a series of activities for the manufacture of the product or service delivery.
These costs are costs that have been previously incurred in the past (historical). Historical cost information is generally used by external parties to determine the value of inventories and cost of goods sold for the purpose of calculating the amount of profit.
This is closely related to the depreciation of the statement of financial position and the income statement which is the responsibility of management to an external party.
Also Read: Understanding the Price Index
Therefore, for the benefit of external parties, cost accounting must comply with generally accepted accounting principles-GAAP.
This means that cost accounting is a part of financial accounting that is used to determine the amount of product costs, inventory value and cost of goods sold.