(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

Managerial Accounting and Costing Systems

            Cost accounting systems are also referred to as product costing system or simply costing systems is a system that is utilized by companies as a measure to help managers track the cost activities of the products that they manufacture for profitability analysis, valuation of their inventory and to control cost. There are many different costing systems that firms can use according to the functioning of their company. Costing systems are designed to gather and report complete data in regards to revenue, cost, and product profitability (Accounting Tools, 2014). Managers can use this data to set goals and make certain plans and adjustments to maintain their company. This assignment will allow me to review two different costing systems: job order costing systems and process costing systems. I will define both of these systems and review each system in detail to determine which is best suited for EEC's production of our new 1.5 GB memory chip for the computer.
             Job Order Costing Systems.
             Companies utilize the job order costing system generally produce unique or one of a kind products that have either been a part of a specialty order or they provide customized services. This particular system is most appropriate for event management or planning companies or companies that create specialty furniture. This particular cost system traces the costs that are relative to direct labor, materials and the overhead that is associated to a particular job order (Job Order Costing System, 2011). Job orders are defined as a customer order for a specified quantity of a particular product or service. Job Order Costing Systems measure the cost of each completed product and provides a report on the costs of all of the activities on a job order. Job order cost system aids in assigning costs to each job in a job order, which is particularly beneficial in tracking the costs associated with the production of each product.


Essays Related to Managerial Accounting and Costing Systems

1. Standard Costing And Budgetary Cost

Advantages Of Standard Costing Standard costing has been the predominant accounting system in manufacturing companies for both cost control and product costing purposes, for several decades. ... Like any tool, a standard costing system can be misused. ... Relation between Standard Costing and Budgetary Control A managerial accounting's budgetary control system works like a thermostat. ... It is the cost chosen by the managerial accountant to serve as the benchmark in the budgetary-control system. ... Third the managerial accountant compares the actual cost with budgeted or stand...

  • Word Count: 1334
  • Approx Pages: 5
  • Grade Level: Undergraduate

2. international accounting

(M.Jone 2002) this is due to three sources of differences between accounting system (C.Roberts; P.Weetman; P.Gordon 2002). ... The cost of an accounting system in an multinational is increased both by the cost of designing and running different accounting systems in different countries, and the cost of adjusting accounts from different countries to the accounting system of the country of the holding company for consolidation. ... Cecchini (1988) reports on survey of European international companies showing that different national accounting system caused between 10% and 30% of the total a...

  • Word Count: 2830
  • Approx Pages: 11
  • Grade Level: Undergraduate

3. Definition of Accounting

As it is pointed out by Dyson (1994), the growth of a monetary system enabled more sophisticated methods to be developed. ... We can distinguish four phases of accounting: Stewardship accounting. ... If we combine all of the definitions of accounting, we end up with the definition that accounting is "an information system that measures, processes and communicates financial information about an identifiable economic entity", as described by Anderson et al. (1994). ... It can be seen from the above examples that accounting has moved from a simple recording process towards a more complex sys...

  • Word Count: 1977
  • Approx Pages: 8
  • Grade Level: Undergraduate

4. Accounting

In accounting systems, certain controls are needed to ensure that employees are doing their jobs properly and ensure that the system runs properly. ... Today more and more companies are moving from the manual accounting systems to computerized accounting information systems. ... These documents would allow management to decide if the system being developed would be viable and cost effective. ... These managerial controls force the development team to do a thorough job since they are accountable to management.. ... Computerized accounting systems bring with then a set of new and unique problems...

  • Word Count: 1631
  • Approx Pages: 7
  • Has Bibliography
  • Grade Level: Undergraduate

5. Management Accounting - Measue Of Qualitive Plans And Controls

Management Accounting II Essay Three "Quantitative models and qualitative models of revenues and costs for evaluation are important for measurement of managerial performance. Given that the "traditional" cost accounting measures are quantitative, how can cost and management accounting begin to assess and "measure" qualitative plans and controls?" ... The basis of a responsibility accounting system is to appoint all of the different departments within an organisation a specific type of responsibility center. ... The traditional approach to responsibility accounting systems tends to lo...

  • Word Count: 1429
  • Approx Pages: 6
  • Has Bibliography
  • Grade Level: Undergraduate

6. What is accounting?

With this context we can say that accounting is split into three categories: Financial Accounting Financial accounting can be broadly classified as that part of accounting system that tries to meet the needs of the various external user groups. ... There are attempts made to make it standard but the following two fields are still treated differently by companies: Valuation Of Inventory Calculation Of Depreciation Cost Accounting The cost accounting system is a vital part of the basic accounting system that accumulates cost data for use in both managerial and financial accoun...

  • Word Count: 2771
  • Approx Pages: 11
  • Grade Level: Undergraduate

7. Information Systems for Mangers

Managerial end users are managers, entrepreneurs, or managerial-level professionals who personally use information system. ... There are several types of information systems support a variety of managerial end user responsibilities: (1) management information system, (2) decision support system, and (3) executive information systems. ... Business information systems are a variety of types of information (transaction processing, management information, decision support, etc.) that support the business functions of accounting, financing, marketing, operations management, and human resources ...

  • Word Count: 2617
  • Approx Pages: 10
  • Grade Level: Undergraduate

8. Envrionmental Accounting

What is environmental management accounting? Environmental management accounting is a combined approach for the transition of data from financial accounting and cost accounting to increase material efficiency, reduce environmental impact and risk and reduce costs of environmental protection. ... Accountants have the potential to make a contribution towards environmental issues in corporations through managerial, auditing and reporting skills. ... Internal environment accounting or cost accounting traces the costs of the corporation's activities on the environment. ... To account for...

  • Word Count: 3332
  • Approx Pages: 13

9. Activity Based Costing

Costing is a major role in managerial accounting. ... "ABC generates more accurate cost and performance information related to specific products and services than is available to managers through traditional cost accounting approaches." [5]. ... The identification of these activities needs a thorough understanding of the system [3]. ... Some traditional costing methods in comparison to ABC method are [7]: Organizational element, budgetary account, and traditional cost accounting. ... Traditional cost accounting This method uses the historical model of cost accounting where the direct, i...

  • Word Count: 1507
  • Approx Pages: 6
  • Has Bibliography
  • Grade Level: High School

Got a writing question? Ask our professional writer!
Submit My Question