Some Useful Tips To Write Perfect Cost Accounting Assignments

What are the different types of cost accounting?

Cost accounting is known as a method of accounting which aims to capture all the expenses incurred during an accounting period. These costs are mainly captured during the accounting period in order to facilitate the management in making correct decisions. It mainly involves gathering, classifying and recording all the outlays and expenses acquired which are afterwards summarised and analysed in order to find the best selling price as well as determine where savings are possible.  You can get assignment help from My Assignment Help to complete your accounting assignment.

The four main types of cost accounting are:

Standard cost accounting: This type of cost accounting utilizes varied types of ratios in order to draw comparison of the ways in which productive labor and resources are used. This type also determine in ways it can be utilized in order to produce products and services in standard conditions. However, one of the problems related to standard cost accounting is that it mainly focuses on labor productivity while labor expenses comprise of small ratio of costs in existing companies.

Activity based cost accounting- Activity-based cost accounting is described as a method to the costing as well as regulation of activities. These activities include tracking resource usage and costing final production along with resources allocated to activities and activities to cost objects as per consumption assessments. This type of cost accounting mainly accrues the expenses from each unit and allocating them to particular cost objects associated with goods, services as well as customers. Activity based costing is seen to have higher level of accuracy and effective to supervisors in assessing the costs as well as revenues of the goods and services of the company.

Lean Accounting- This type of accounting is related to an extension of the concept of lean manufacturing as well as production developed by the Japanese business corporations. This type of accounting put importance on value-based expenses as lean focused performance measurements.

Marginal costing- This type of costing is also known as value profit analysis. It mainly includes assessment of the association between the goods, services, sales, volume, production amount, revenues, costs and outlays. The association is considered as the contribution margin which is estimated by deducting the variable expense from the profit. Further the variable cost is divided by revenue. This calculation gives the management an effective insight into likely revenues along with highly profitable sales price as well as type of marketing which is essential.  Get accounting assignment help to solve all types of accounting questions.

            In cost accounting, money is considered as the financial aspect of production. On the contrary, money is considered as the measure of financial performance in financial accounting. Since, cost accounting is typically used as an internal management tool; it does not follow any particular standards. It also differs from one corporation to the other.

What are the functions of cost accounting?

Ascertainment of cost- Cost ascertainment is a vital function performed by cost accounting. Cost accounting mainly records each and every factor which is associated with production performance in systematic manner. These activities involve fixed as well as variable along with direct and indirect outlays. The data collected by cost accounting is considered by managers in evaluating the accurate and actual expense of products. However, without cost accounting, it is highly crucial to find out the actual cost of the goods and services.

Controlling cost- Cost accounting benefits the organisation in regulating their cost. Cost accounting makes provision to detailed information associated with cost of each step of production. This accumulated information is subsequently compared with set criterions. However, if any deviation is found, essential steps are taken. As a result, cost accounting helps in identifying deviations in cost and time controlling them.

Inventory control- Cost accounting supports in regulating the inventory by keeping track of each items of the inventory. It mainly preserves information on complete records of all raw resources to maintain timely order of raw materials. Cost accounting also helps in prevention of critical situations such as excess order or inadequate order of raw materials. It also avoids any wastage of materials and losses for the company. Cost Accounting has an imperative role in increasing the level of cost efficiency of organisation by taking strategic decisions. 

Measurement of productivity- Cost accounting helps in measuring the effectiveness and production of business operations. In such cases, managers can very easily obtain information of production expenses. These expenses can be later analyzed in order to determine productivity level of business operations. Cost accounting also helps in preventing wastage of varied resources of the organization by means of accurate monitoring. It primarily uses a typical cost method in determining the level of efficiency of each procedure, product as well as department.

Determining Selling Prices- Cost accounting supports ascertainment of exact cost of production of manufactured goods. However, by tallying the revenue margin to the actual cost business can effortlessly fix the selling price for its products. Companies which perform as per cost accounting employ various techniques such as batch costing, job estimation, provision and output estimation for determining the selling price of its goods. Furthermore, it mainly provides all in-depth information related to production cost to managers to make central decision vis-à-vis controlling cost.

Reveals profitable and non-profitable activities

Cost accounting provides accurate details of each activity of business to administrators in determining which one is lucrative and which one is not. It mainly supplies all detailed information vis-à-vis the charges or prices of each product of business. In such stages, managers by comparing the price of the product with demand in the market can determine whether to carry on its manufacture or not. Cost accounting further supports in determining cost-effective as well as non-profitable activities of business by directors.

Tips To Write Perfect Cost Accounting Assignments

·         Understanding the subject will make the assignment easy and comprehensive

·         Cost accounting solutions must be self-explanatory

·         Students must provide assignment in accordance to cost accounting analysis.

·         Students must undergo the process of collecting, analysing as well as summarizing various alternative courses of action while writing cost accounting assignment.