Concept of Cost Accounting Homework Help
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What is Cost Accounting?
The allocation of cost to the products per unit and their control in management is called as cost accounting. It helps to calculate the accurate profit that has been generated through the production and sales. The exact value of finishing inventories along with correct prices of goods is also calculated from this. Ultimately cost accounting examines truly the cost structure of the business. In this concept of cost accounting homework help article we look at the various characteristics of it.
Key Activities of Cost Accounting
An understanding of where the company earns and loses money in terms of investment and revenue is the main fundamental of cost accounting. The key activities compiled by our concept of cost accounting homework help writers are
1. Distribution of cost in categories of direct labor, direct material, direct manufacturing costs.
2. Generation of standard cost in the engineering and procurement departments.
3. All cost but the period costs are allocated to generate the cost for services of goods.
4. The transfer prices at which the product will be sold from one company to other.
5. Changes in any trends for the costs as per GAAP.
6. Sorting of cost reports for the top management.
7. Determining the factors for cost reduction.
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Direct Cost Vs Indirect Cost in Concept of Cost Accounting Homework Help Article
Direct cost for a product can be easily traced by looking at the production procedure, as per our concept of cost accounting homework help writers. On the other hand indirect costs cannot be easily traced for the same.
Example: direct material and labor cost for direct cost and manufacturing overheads for indirect costs.
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