Cost accounting procedures
1 Strategic Cost Management: SCM is the process of identifying, accumulating, measuring, analyzing, interpreting, and reporting cost information useful to both internal and external groups concerned with the way in which an organization uses its resources to meet its objectives..
Cost accounting procedures
Strategic cost management (SCM) deals with measuring and managing costs and aligning them to the business strategy.
The cost and management accounting information thus developed would help managers to understand and implement the strategy, diagnosis the performance and influence behavior and decisions..
Cost accounting procedures
This is the analytical classification of costs.
Let us divide as per their natures.
So basically there are three broad categories as per this classification, namely Labor Cost, Materials Cost and Expenses.
These heads make it easier to classify the costs in a cost sheet..
What is the nature of cost control?
Cost Control focuses on decreasing the total cost of production while cost reduction focuses on decreasing per unit cost of a product.
Cost Control is a temporary process in nature.
Unlike Cost Reduction which is a permanent process.
The process of cost control will be completed when the specified target is achieved..
What is the nature of cost management?
Cost management is the process of planning and controlling the costs associated with running a business.
It includes collecting, analyzing and reporting cost information to more effectively budget, forecast and monitor costs..
What is the nature of cost?
Let us divide as per their natures.
So basically there are three broad categories as per this classification, namely Labor Cost, Materials Cost and Expenses.
These heads make it easier to classify the costs in a cost sheet.
They help ascertain the total cost and determine the cost of the work-in-progress..
What is the nature of costs?
Nature of Costs: • There are accounting costs which an entrepreneur takes into account in making payments to the various factors of production.
Explicit costs are the payments to outside suppliers of inputs.” • Implicit costs are the imputed value of the entrepreneur's own resources and services..
