Measuring profit or net income is the most important thing an accountant does. The next most important thing is to measure the cost. Cost is very important to make a substantial difference in the bottom line of the company you can run the business and effectively manage them.
Knowing the needs of products selling business, what is doing with that product cost is complicated with manufacturing - selling. All steps of the production process need to be carefully tracked from start to finish. Manufacturing costs can not be directly compared with specific products. In order to calculate the total cost of each manufactured product, the accountant devises a method to assign indirect production cost to a specific product. Generally accepted accounting principles (GAAP) are a few guideline measurement products.
As an accountant, such as department or other organizational unit cost of business, in addition to product cost, many other costs need to be determined.
Tsutsu, twinkling, itching, tsutsutsuu tsutsu Itsu hunting hunting tsutsutsu It is the most important to confuse it, but the cost is measured There is no way to set up reporting.Cost accounting can fall anywhere in consecutive or extensive consecutive.The actual cost is the specific cost used to measure the cost They are often entirely dependent on the method.Sometimes several systems for judging sports accuracy are very important again.Total cost of goods or products sold are sales when measuring profit The first, usually deducted from high is the maximum cost.
Cost type
Direct expenses will be the cost of new car tires, examples of direct costs at the expense that can be attributed directly to the product or product line, or sales revenue source, or business business unit or operation of the business.
Indirect costs are very different and can not be attached to specific products, units, or activities. Labor costs and benefits of car manufacturers are certainly cost, but they can not be installed on either vehicle. Each business must devise ways to allocate indirect costs to different products, sources of sales revenue, business units, etc. Most allocation methods are not perfect, generally it will be arbitrary to some extent. Business managers and accounts always keep an eye on the allocation method used for indirect costs and the coins generated by these methods in salt grains
Fixed costs are those costs that stay the same over a relatively wide range of sales volume or output of production. They are like albatross around the neck of the business and the company has to sell that product with a sufficiently high profit to break even at least
Variable costs can be increased or decreased in proportion to changes in sales or production levels. Variable costs will change in proportion to production change /
The relevant cost is essentially the future cost that can be owed by the business taken by any strategic course. Automakers decided to increase production, but if the cost of the tire goes up, it is necessary to consider that cost.
Unrelated costs are those that should be ignored in determining future courses of action. They are the costs that you bring to make the wrong decisions. The related cost is the future cost, while the related cost is the cost that occurred in the past. I lost money
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