Cost Accounting (eBook)

Stage 2

Mark Lee Inman (Autor)

eBook Download: PDF

2014 | 2. Auflage
312 Seiten
Elsevier Science (Verlag)
978-1-4831-0587-1 (ISBN)

Infos

Cost Accounting, Second Edition covers information and terminologies that prepare students for the final Level of the Accounting Technicians examinations, and the Level 1 Cost Accounting paper for the Chartered Association of Certified Accountants. The book provides definitions of terms associated with cost and costing and discusses the environment and uses of cost accounting. The text identifies the basic elements of cost accounting and how some of the elements are drawn into the procedures, with focus on materials and conversion cost. The types of costing methods, the typical costing systems, the basic mechanics of process costing, and the impact of losses and gains and work-in-progress are also considered. The book discusses marginal and standard costing, budget, and variance analysis, which is the essential mechanics of the operation of standard costing. The book also apprises cost accounting system, integrated accounts, and the presentation of cost accounting information. The last part of the book aims to review the communications constraints and desires put upon the accountant and to go into the mechanics of report writing. The book will be invaluable to certified accountants, management accountants, and non-mathematical students taking accounting subjects.

Inhalt

Front Cover 1
Cost Accounting 4
Copyright Page 5
Table of Contents 6
Preface 8
Chapter 1. Introduction 10
Definitions 10
The environment of cost accounting 12
The uses of cost accounting 13
A review of terms associated with costing 15
Note on SSAP9 18
Questions 19
References and further reading 20
Chapter 2. Cost ascertainment - materials 22
Cost centre 22
The elements of cost 23
Material costs 25
Additional points to be considered under the heading of material costs 34
Questions 41
References and further reading 41
Chapter 3. Conversion costs 42
Labour cost control 42
Overheads 53
Final considerations 67
Summary of Chapters 2 and 3 69
Questions 69
References and further reading 72
Chapter 4. Types of costing 73
Types of costing methods 73
Product cost accounting 73
Questions 93
References and further reading 96
Chapter 5. Job costing 100
Introduction and definition 100
Contract costing 105
Batch costing 117
Questions 121
References and further reading 125
Chapter 6. Process costing 126
Introduction 126
Basic mechanics 126
Abnormal losses and gains 128
The impact of work-in-progress 130
Process costing and cost control 136
Process costing and decision making 136
The debate about process costing 138
Joint costs and by-products 139
Questions 148
References and further reading 152
Chapter 7. Marginal costing 153
Introduction and definitions 153
Marginal cost reporting 159
Marginal costs and decision making 161
Marginal costing versus total absorption costing 170
Extensions to the marginal costing approach 171
The absorption/marginal costing controversy 179
Questions 180
References and further reading 187
Chapter 8. Budgets 188
Introduction and definition 188
Types of budgets 189
Advantages of budgeting 191
The essentials for effective budgeting 191
A word about flexed budgets 192
The mechanics of budgeting 193
Control against budgets 202
Questions 203
Chapter 9. Standard costing 209
Introduction 209
The control process 210
Types of standard 211
4 The current standard 213
The setting of the standards 214
Behavioural aspects of standard costing 216
Criticism of standard costing 217
Questions 218
References and further reading 218
Chapter 10. Variance analysis 219
Introduction 219
The definition of a 'variance' 219
Direct materials variances 220
Direct labour variances 222
Overhead variances 224
Reporting on variances 229
Investigation of variances 235
Selection of a variance to be investigated 236
Ratio analysis and variances 237
Questions 239
References and further reading 246
Chapter 11. Cost accounting systems 247
Introduction 247
Objectives of a cost accounting system 247
Determining the cost accounting system 249
Absorption 252
Valuation 253
Audit requirements 253
Decision making 254
Predictive information 256
Appraising the information system 256
Modifying the cost accounting system 256
The use of computers in cost accounting 257
Questions 263
References and further reading 264
Chapter 12. Integrated accounts 265
Introduction 265
The ledgers and books of account 265
Costing profit and loss accounts 270
Towards a non-integrated system 271
A comment about 'interlocking accounts' 275
Fully integrated accounting systems 276
Flowchart for cost accounts and their relationship with the financial accounts 278
Questions 286
References and further reading 290
Chapter 13. Presentation of cost accounting information 291
Introduction 291
Accountancy is a communications discipline 291
Primary rubric 292
Some essential rubrics 292
Extensions and contrasting viewpoints 292
The methodology of report writing 295
Report to management on the advisability of closing Department 3 299
Introduction 299
Findings 299
Conclusions and recommendations 300
Cost centre supervisor 302
Works manager 303
Managing director 305
Conclusion 307
Questions 307
References and further reading 309
Index 310

Produkt-Details

• Erscheint lt. Verlag: 21.5.2014
• Sprache: englisch
• Themenwelt: Recht / Steuern ► Wirtschaftsrecht
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Rechnungswesen / Bilanzen
• Themenwelt: Betriebswirtschaft / Management ► Spezielle Betriebswirtschaftslehre ► Bankbetriebslehre
• ISBN-10: 1-4831-0587-3 / 1483105873
• ISBN-13: 978-1-4831-0587-1 / 9781483105871