Types of Accounting: Cost Accounting
Cost accounting is in relation to
accounting types which is responsible for sorting and collecting information on
the current costs that are generated in a company.
Within the cost accounting are
grouped the design treatment and management of costs.
Cost accounting can be focused on
departmental activities regions or products.
In the same way, cost accounting
deals with managing the expected and desired future costs. Cost accounting
categorizes by following behavioral patterns, activities and processes in which
the costs are linked to the products and their categories. Taking into account
the type of system that is used, the information collected will be written
reports on the manufacture of products and services. These reports help
management make decisions.
The three most common models of
cost accounting are:
- Full Cost
- Direct Cost
- ABC (activity-based accounting)
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