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Article: Toward Diversified Cost Accounting Systems.
- Article from:
- The National Public Accountant
- Article date:
- February 1, 2000
- Author:
CopyrightCOPYRIGHT 2000 National Society of Public Accountants. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Cost accounting systems usually take the form of job order or process. Each of these two systems can be expanded to include standards and recording of the variances in the accounting records. Variances are written off to Cost of Goods sold or allocated to the various inventory accounts and Cost of Goods sold on a rational basis. Ideally, firms detail their accounts by variable and fixed costs.
NEED FOR A SOUND COST ACCOUNTING SYSTEM
A good cost accounting system allows managers to solve a multitude of accounting problems as well as furnish data for business decisions. For example, defining cost by variable and fixed makes it possible for managers to ...