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Cost accounting is one of the kinds of managerial accounting. The objective of cost accounting is to calculate the company's total production cost using the variable cost. It is used by various internal management teams of a company to check the value of fixed and variable costs related to the production process. Cost accounting starts with measuring and recording fixed and variable costs independently, then relate input cost with the output cost that helps in calculating finance performances and taking future decisions related to business.
This system enables a company to analyze the cost that is used to produce something. These are of two types:
It organizes the amount for each job. Job order costing is an excellent method for companies that has various products. For example, a company manufactures 10 different kinds of products. By distinguishing each product, the company can easily analyze which product is helping in producing more profit.
It enables the company to estimate the cost depend on the 'process.' A water bottle plant can utilize the process costing as the company use the same product that is not indistinguishable.
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Cost accounting is the set of procedures for reporting and recording manufactured goods' costs and giving services in detail. Get excellent services from our cost accounting homework helps experts to learn more about the concept of cost accounting. Our experts are accessible 24*7 for your help.
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