SOME ELEMENTARY CONGENIALITY
Cost accounting is accounting talking about fundamental price pixing from something product produced ( or sold in market), good to fulfilling order from orderer and also to become the merchanidise stock to be sold.
Accounting in general is represent the record-keeping process, classification, summarizing and presentation in the way of is certain of finance transaction that happened in other;dissimilar company or organisation and interpretation to its result. While expense in wide congeniality represent the sacrifice which have been happened or possibly will be happened to reach specific-purpose.
Target of cost accounting is to present the information of production cost from a company, on that account hence cost accounting earn given by congeniality as record-keeping process, classification, summarizing and expense presentation in order to production of certain service or goods in the way of and also interpretation to its result.
Oftentimes expense congeniality blurred with the cost of good sold congeniality, but in fact the mentioned have the difference and equation. In cost accounting, expense represent all is happened the expenditure ( expired) used in yielded production process. All expense that happened ( the expired) form a cost of good sold which is if divided with the product amount yielded or product ordered yield the cost of good sold of product of per unit. In wide mean, cost of good sold can mean as part of acquirement price of an asset delayed by its encumbering in the future.
Cost accounting in its target is broader, beside for the gathering of expense reporting and also for the planning, operation and decision making by management. On the score of that's at] its last growth is cost accounting its focus change over from simply fundamental price pixing of goods or service produced to importance for the financial control.
Application conception the cost accounting also now have extended from simply fundamental price pixing of production bringing conotation just to part of production with the its production activity to all activity in company which is concerning expense of like selling expense, general and administration expense and others.
Final purpose of cost accounting is provide the information of about expense for the management of utilize to assist the them in managing company or its department. Management in managing company or its department need the accurate expense data. accurate expense enable its determinable is cost of good sold of product accurately and precisely. To determine the cost of good sold accurately hence expense require to be classified detachable so that between which production cost and which also which is non production cost.
Correct expense classification is by using concept " diffrent costs for diffrent purposes", which intended to that expense classified by on the basis of use target from the expense data. Expense classification for example is :
1. Pursuant to relation with the product, expense classified by for :
a. Production costs
Namely direct coresponding costs with the production from a product and will be brought into contact with the revenue in which period of that product is sold. Before sold saleable, production cost considered as by supplies. This expense is consisted of the: permanent material cost, direct labor cost and factory overhead cost.
Production cost consisted of the permanent material cost, labour, and divisible cost overhead again into two category namely prima cost consisted of by the material cost and labour, and conversion cost namely labour cost and factory overhead cost. Prima cost is direct coresponding cost with the production while conversion cost is cost which is needed to process the raw material become the product finish.
b. Periodic costs
Namely more costs relate to the time compared to from unit produced. All this expense is charged upon by production in which period of the cost happened. This periodical cost named also commercial cost. Follow the example of from this cost is: general and administration cost, marketing cost. Special of this marketing cost, accountant is not consistent do it, like advertising cost is often delayed by its encumbering because still be assumed useful to get the advantage in the future.
2. Pursuant to period accounting, expense classified by for :
a. Capital expenditure
Namely costs released which its benefit is enjoyed by more than one accounting period (cost one year). This expenditure will form the "cost" (cost of good sold). Follow the example of this cost: cost of building repair which is big relative which its benefit more than one year.
b. Production expenditure
Namely costs released which useful only in one accounting period (less or equal to one year). This expenditure will become "expense" in moment period of the happening of that cost.
3. Pursuant to its relation with the volume produce/company activity, expense classified by for :
a. Variable costs
Namely costs which always change by proporsional as according to comparison of especial activity company. Example volume of this expense: permanent material cost, direct labor cost, some of cost overhead of like electrics cost, gas and water paid by as according to usage, depreciation calculated by on the basis of unit produce (set of unit output).
b. Semivariabel costs
Namely expense which always change but its change is ill assorted with the activity change/company volume. Follow the example of this cost: employ the salesman/salesgirl which its system of pay with the regular salary certain percentage plus from sale, cost repair and conservancy and others. This cost will fixed its amount in certain range.
c. Fixed costs
Namely big cost minimize that is not influenced by big minimize of volume of company activity. Follow the example: depreciation cost that is calculated with the straight line method, fee which remain to for a few specified period.
4. Pursuant to in its relation for the purpose of observation, expense classified by for :
a. Standard costs
Namely expense which have been determined beforehand (estimated will be happened), and in the event of deviation to its, hence this standard cost assumed by correctness.
b. Valuation costs
Namely cost appraised beforehand (estimated will be happened), and in the event of deviation to its, hence assumed correct is real cost.
c. Real costs
Namely costs which is seriously happened or burdensome cost.
5. Pursuant to in its relation departmentally produce, expense classified by for :
a. Departmental costs produce
Namely cost which is is imposed on to be reckoned at shares/department which directly handle the goods making. Follow the example of this cost: permanent material cost of department produce X.
b. Ministrant departmental costs
Namely cost which is is charged against by a department providing facility/giving service to departmental other;dissimilar (departmentally produce or other ministrant department). Follow the example: departmental salary cost of electrics assistant.
c. Departmental direct cost
Namely direct costs became of by every department.
d. Departmental indirect costs
Namely costs reckoned to a department because the department use the departmental facility other;dissimilar.
6. Pursuant to in its relation with the function of exist in company, expense consisted of :
a. Production costs
Namely total cost raw material, labour cost and factory overhead cost in order to producing product.
b. Marketing costs
Namely cost released in order to marketing yielded product. Taking example: advertising cost, employ the seller and others.
c. General and administration costs
Namely cost released in order to instructing, controling and operate company. For example: salary cost board of directors, letter cost, phone and others.
d. Finance costs
Namely cost released in order to getting fund to operate for the company. For example: interest cost
COST DATA BENEFIT
Cost needed by as according to wanted or clasification faction, is later then presented and analysed, will very be benefit to management. Cost data will be able to be exploited by management to various target.
Benefit from cost data for example :
1. For the purpose of observation
2. Assisting in pricing sell
3. To count the periodical profit loss
4. For the financial control
5. For the decision making