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Different methods of calculating costs in Cost Accounting

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  1. Introduction
  2. The primary difficulty of the knowledge of the result of exercise
  3. The resolution of the above problem without cost accounting
  4. The homogeneous sections method and full costs
  5. The method of rational allocation
  6. UVA method: an extension of the GP method
  7. The method of cost calculation features
  8. Employment trends of analytical methods
  9. Conclusion

Cost accounting is a system of accounts, adjusted to the general ledger, identifying and valuing the elements of profit for the year and allow the interpretation and exploitation by company management. It brings each of its costs, whether incurred in the year or in previous periods. It divides the results by decision center for better management or consolidated by line of business, in order to better assess the situation. It is sometimes associated with other management techniques such as budget management or management by objectives, which it provides the basis for comparison as management accounting.

Long reserved for large industrial companies (we spoke in the nineteenth century industrial accounting), because of its complexity and cost of implementing cost accounting has become widespread with the advent of IT and management software that have greatly reduced the cost of collection and processing of detailed information. It now covers all forms and sizes of companies, of which it is a key component of the information system.

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